Cryptocurrency exchange Binance is allowing its users to buy fractions of companies’ shares with a new tokenized stock trading service, starting with Tesla.
The crypto exchange announced Monday the launch of Binance Stock Tokens, zero-commission digital tokens that qualify holders for returns including dividends. As of 1:35 p.m. UTC (9:35 a.m. ET) April 12, users will be able to buy fractions of actual Tesla shares, which trade at $677 a share at the time of writing. Users will be able to purchase as little as one-hundredth of a Tesla share, with prices settled in Binance USD (BUSD).
The new service removes the hurdle local investors go through to buy stocks of international companies.
”If you want to buy stocks of international/US companies like TESLA we have to go through a lot of documentation, permissions and also there’s a limit on how much money you can invest”, Hritesh joshi, an Indian-based investor said on Twitter.