With Coinbase all set for a public listing later today, leading cryptocurrency exchange Binance has announced that investors will be able to trade the Coinbase Stock Coin (COIN) once it becomes available to trade on Nasdaq.
However, interested traders will need to pass the exchange’s know-your-customer (KYC) requirements, as well as adhere to other compliance measures.
Binance Tokenized Stock Trading Service
With the latest developments, COIN will become the second stock token after Tesla (TSLA) to be listed on the Binance website.
On Monday, the exchange started its zero-commission tokenized stock trading service on Monday with Tesla stock.
The initiative allows users to purchase companies’ fractional shares, which qualifies investors for economic returns on the underlying shares.
“Binance Stock Tokens are fully backed by a depository portfolio of underlying securities that represents the outstanding tokens,” excerpts of the announcement read.
The exchange started the stock trading service due to increased users’ demand. Binance has also promised users that, going forward, it will be listing more tokenized stock of reputable companies.
Notably, Binance stock trading will not be available to traders in Mainland China, Turkey, and other restricted jurisdictions.
Coinbase Goes Public
The big day is here when Coinbase will officially go public through a direct listing on the Nasdaq exchange, a move that will allow investors to buy nearly 115 million shares of the firm’s Class A stock.
Recall that the San Francisco-based crypto exchange filed with the United States Security and exchange Commission (SEC) to go public toward the end of last year.
Although the company initially planned on going public in March, the date was pushed forward to April due to charges slammed against them by the U.S. Commodity Futures Trading Commission (CFTC).
Coinbase has since settled with the CFTC and is set for a groundbreaking direct listing, thus playing a major role in helping the crypto community to go mainstream.