Cryptocurrency exchange Binance launches zero-commission, tradable stock tokens, listing Tesla (TSLA) as the first stock on the platform.

Leading cryptocurrency exchange Binance announced yesterday that it would launch tokenised stock trading on its platforms. Binance added that its users can now purchase fractions of companies’ shares.

In a blog post, Binance stated that “Binance is delighted to announce the official launch of its zero-commission, tradable stock tokens, allowing the users to trade fractional stocks. Stock tokens are denominated, settled, and collateralized in BUSD.”

Binance is starting with Tesla Inc. (TSLA) as the first stock token on its platform. The exchange added that trading for the TSLA/BUSD pair began a few hours after the announcement. As of now, Binance users can trade fractional Tesla stock on its platform.

Binance CEO Changpeng Zhao, popularly known as ‘CZ’, explained the exchange’s choice of starting with Tesla. He tweeted that Elon Musk brought crypto to Tesla, and now Binance is bringing Tesla to crypto.

According to the cryptocurrency exchange, the Binance Stock Tokens are zero-commission digital tokens that are wholly backed by a depository portfolio of underlying assets, representing the tokens. The stock token holders get to enjoy the economic returns on the underlying shares, including dividends paid by the company.

Binance added that it launched the tokenised stock trading service due to demand from its users, and it will continue to respond to market demand by listing more stock tokens and features. The cryptocurrency exchange pointed out that the service isn’t available to people living in Mainland China, Turkey, and other restricted jurisdictions. The tokenised stock trading service is only available to traders that have passed their Know-Your-Customer and other relevant compliance protocols.

Binance has been one of the top digital currency exchanges in the world since it debuted in 2017. Its native Binance Coin (BNB) has been rallying in recent weeks, and it is now the third most valuable cryptocurrency, behind only Ethereum and Bitcoin.

This post was originally published on Coinlist.