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Wednesday, April 14, 2021 / 11:42 AM / By Cointelegraph / Header Image Credit: Binance
Major exchanges are
elbowing for exposure to Coinbase's listing.
Major global cryptocurrency exchanges including
Binance and FTX have announced the listing of Coinbase's stock token ahead of
its direct listing on Nasdaq.
According to a Wednesday announcement, Binance will
list Coinbase's stock token (COIN) today, allowing its users to trade
fractional Coinbase stock on the Binance website.
The new stock token will trade against Binance USD
(BUSD), Binance's stablecoin pegged to the United States dollar and issued by
Paxos Trust Company.
Binance said that Coinbase stock tokens are
zero-commission digital tokens fully backed by a depository portfolio of
underlying securities representing the tokens. The exchange stated that holders
of stock tokens qualify for economic returns on the underlying shares,
including potential dividends.
Stock token trading on Binance will follow traditional
exchange hours and is not available for residents in Mainland China, Turkey,
and other restricted jurisdictions. The move comes shortly after Binance listed
a tradable stock token for Tesla earlier this month.
FTX, a major crypto derivatives trading platform, put
out a similar announcement today, stating that the platform has already listed
the COIN token. "COIN is a pre-IPO contract. It tracks Coinbase's market cap
divided by 261,300,000. CBSE balances will convert into the equivalent amount
of Coinbase Fractional Stock tokens at the end of Coinbase's first public
trading day," FTX stated on its COIN/USD market page.
"In the event that Coinbase does not publicly list by
June 1, 2022, COIN balances will cash-expire to $30.62, in line with an 8
billion-dollar valuation," FTX noted. At the time of writing, the price of COIN
token hovers around $580 on FTX.
Coinbase announced that it expects to introduce Class
A common stock for trading on the Nasdaq Global Select Market on April 14.
In a Wednesday blog post, Coinbase co-founder and CEO
Brian Armstrong said that the exchange's listing is part of the company's
mission to increase economic freedom:
"Today's listing is a milestone, but it's not as
important as every new day in front of us. [...] Everyone deserves access to
financial services that can help them build a better life for themselves and
their families. We have a lot of hard work to do to make this a reality."
Credit:
The post Binance
and FTX List Coinbase Stock Tokens Ahead of Exchange's Nasdaq Debut first appeared in cointelegraph.com on April 14, 2021.
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