Binance exchange plans to list the Coinbase Stock Token (COIN)

on Apr 14, 2021
Updated: Jun 1, 2022
  • Through this listing, Binance aims to let investors purchase and trade COIN fractionally.
  • Binance believes tokenized stock trading will connect the crypto and traditional worlds.
  • Before COIN, Binance listed TSLA/BUSD and the trading pair has a volume of £4.86 million.

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Leading cryptocurrency exchange Binance has announced that it intends to list the Coinbase Stock Token (COIN) after Coinbase goes public on Nasdaq. Binance unveiled this news earlier today, noting that once COIN is listed on Nasdaq, it will roll out trading for the COIN immediately. In so doing, the exchange seeks to let users trade fractional Coinbase stock through the Binance website.

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According to the announcement, Binance Stock Tokens are zero-commission digital tokens that are fully backed by a depository portfolio of underlying securities, which represents the outstanding tokens. By holding stoke tokens, users become eligible for economic returns, including dividends, on the underlying shares.

Reportedly, Regulation SHO Rule 201 will not apply to COIN until the second day of trading on Nasdaq. This is because the security has never traded on any listing market on Nasdaq and lacks a previous day’s closing price. Seeing as COIN is a direct listing, it will remain in a regulatory suspension until Nasdaq opens trading. Due to applicable rules, Nasdaq set the reference price for COIN at £181.21 because the token lacks sustained trading in a private placement market.

Nasdaq went on to explain that the reference price is not an offering price and that no one has bought or sold shares at the aforementioned price. To determine the opening public price, Nasdaq will use data based on buy and sell orders during the opening auction later today.

Binance set to list more stock tokens following TSLA/BUSD’s success

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By listing the Coinbase Stock Token, Binance will let retail investors buy into companies, which they would have previously considered to be very expensive or out of their reach. Additionally, this listing will help connect the crypto market and the traditional stock market, seeing as COIN will be priced and settled in BUSD, Binance’s stablecoin.

The news of COIN/BUSD’s listing comes after Binance started trading in tokenized stocks on Monday and listed the TSLA/BUSD trading pair. After listing, the pair got a strong market response to register a trading volume of £4.86 million in just three days. To this end, Binance noted that it seeks to continue conforming to market demands by listing more stock tokens and features.

The exchange added that stock trading will be active during traditional exchange hours. However, the stock trading market is not available to people living in the US, Mainland China, and Turkey, among other restricted jurisdictions. Binance went on to note that eligible traders must pass Know-Your-Customer requirements and other compliance terms before participating.


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