Binance, the world’s number one exchange by volume has made immense progress ever since its inception. From creating a decentralized exchange Binance Dex to their charitable wing Binance Charity, they have shone across multiple fields throughout the crypto industry.
Their Native token BNB which was initially created to pay for fees on the Binance exchange has since evolved into a widely-used utility token with more than 120 use cases across the global blockchain ecosystem.
Now, BNB will soon be available for purchase on Switzerland’s biggest stock exchange as an exchange-traded product (ETP). This is a phenomenal milestone for Binance and the entire crypto industry as a whole.
According to an announcement on Binance’s official website, Binance has very recently partnered with the world’s leader in ETP products Amun AG, a Switzerland based firm, to launch a BNB ETP (ABNB). ABNB will be live for trading starting 15 October 2019 on the regulated segment of the SIX Swiss Exchange, which Amun has previously worked with to launch several crypto ETP products.
What is an Exchange Traded Product (ETP)?
An ETP is publicly-traded security that tracks a fundamental financial instrument or index, which in the case of ABNB is the price of BNB. This makes BNB available to a wide range of institutional and retail investors and not just the tech-savvy crypto enthusiasts. With the listing of BNB on the SIX Swiss Exchange, the world’s tenth-largest exchange, customers can add BNB exposure to their stock portfolios as seamlessly as buying a share in any company, in a traditional manner using a brokerage firm or bank.
Binance CEO Changpeng Zhao said in a statement:
“Our partnership with Amun in launching the BNB ETP will provide investors with a new and regulated asset class with a unique dimension to utility tokens, making them more accessible and reliable through a traditional financial infrastructure, this will provide traditional investors access with diversified exposure and segue into the global cryptocurrency market and its innovative products.”
“It’s been tremendous to watch the fast ascent of Binance from its humble launch in 2017 to the leading position it commands today,” said Hany Rashwan, Amun CEO. “We are so excited to partner up with the world’s largest crypto exchange and make their native token accessible to institutional and retail investors in the most secure, cost-effective and regulated Swiss exchange-traded product.”
There have been several controversies regarding BNB in the past due to regulatory concerns, in a statement, Binance stressed over the fact that BNB is a utility token rather than a Security. But ABNB as an ETP is a security, this means that investors can now buy into the Binance eco-system with ABNB without directly purchasing and holding BNB.
“On my end, our ETPs are securities – they are securities by design. That doesn’t have any weighing on what BNB is, you can securitize non-security,” said Rashwan.