June 18, 2024

Swiss Exchange Will Trade ETPs Based on Binance Coin

Swiss exchange will trade ETP based on Binance Coin

The Swiss Exchange (SIX Swiss Exchange) has entered into a partnership agreement with the financial company Amun. WithinThe partnerships will begin processing operations with an Exchange Traded Product (ETP) BNB ETP (ABNB).

ETP is a type of security,the value of which depends on a particular investment instrument. Therefore, the BNB ETP quotation will be tied to the exchange rate of the digital asset Binance Coin (BNB), issued by the cryptocurrency trading platform Binance. According to the authors of the project, the launch of trading in the exchange product will expand the capabilities of traders and attract new customers to the site.

Commented on the news about the development of BNB ETPBinance Director Changpeng Zhao: “The release of BNB ETP together with Amun will give investors access to a new regulated asset class - utility tokens. Traditional financial infrastructure will increase reliability and facilitate the process of using virtual currency.

Binance Coin's digital asset isutility token, since it has several functions, for example, it gives a discount on processing orders on the exchange. However, ABNB will receive the security status common to any exchange product. With it, SIX Swiss Exchange users will be able to invest in the Binance ecosystem by buying digital assets.

According to economists, the launch of the BNB ETP tradewill increase the popularity of BNB coins. In 2019, Binance Coin's capitalization level increased by 255% (to $ 5.5 billion). However, 49.4% of the coins are held by Binance, so the high cap market is provided by the trading floor, not by investors. The ABNB listing on the Swiss Exchange marks the entry of the asset into the traditional European market, which could lead to a significant influx of private and institutional capital.