The Convergence Of Stocks And Cryptocurrency

There’s no reason for American investors to buy a Tesla token when they have access to actual Tesla stock — including fractional shares. In fact, American investors aren’t even allowed to buy Binance’s Tesla token right now.

But the token is immensely useful for people outside of the U.S. that want to invest in Tesla. Tesla is popular throughout the world. Millions would like to invest in it. But they can’t. Tesla is only listed on the NASDAQ. And investing in stocks outside of your own country can be expensive and incredibly difficult (and in some places, impossible). Combine that with the fact that Tesla stock is incredibly expensive (fractional shares aren’t everywhere yet) and you get a giant pool of investors with no exposure to Tesla.

Binance’s new Tesla token changes all of that. It gives people outside of the U.S. a chance to gain exposure to Tesla.

Investing in Tesla through Binance’s stock token also offers a convenience factor that shouldn’t be underestimated. The ability to track all of your investments on one platform is a big win for all investors. And trading platforms know it. It’s why Robinhood allows its users to buy bitcoin.

Binance is clearly bullish on stock tokens. It debuted the Coinbase stock token today — the same day Coinbase went public on the Nasdaq

Eventually, stock tokens will make their way to the U.S. — either through Binance or another company. The market opportunity is too big to ignore. Right now, most American investors are locked out of stocks that trade overseas like Samsung, Aramco, Volkswagen, Nestle etc. Sure, you might be able to get exposure over the counter or via ETFs. But stock tokens are a much better option — almost as good as investing in the stock itself.

In a few years, I think investors will be able to buy stocks, stock tokens, crypto, ETFs, and other investment instruments all on the same platforms. And it’s likely that multiple platforms will be competing for our business — which should lead to more innovation, more investment opportunities and better customer service. 

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