Binance, one of the leading cryptocurrency exchanges, and Amun AG began a unique partnership. Now, BNB, the native currency of Binance, can be purchased as an Exchange Traded Product(ETP). And is available for trading on the world’s 10th largest SIX Swiss Exchange starting today.
Consequently, the partnership will enhance the performance of the Binance utility token (BNB) by exposing it to the ETP market. That said, listing BNB on a popular traditional exchange makes it easily tradable for non-crypto traders also. Listed under the ticker ABNB, the token can now be purchased as a stock through a bank or a broker.
Source: Amun.com
Right now, BNB’s crypto market dominance is close to 1.21% amounting to $2.73 billion making it the 6th largest cryptocurrency. Hany Rashwan shared with the media that the ETP will be backed by approximately 1 million BNB. And those would remain in the custody of Kingdom Trust that provides ultra-cold security to the digital assets.
Security or no security?
Amun is wary of regulatory actions by SEC. Thus, its prospectus clearly states ABNB is not a security and will not be registered under the U.S. Securities Act of 1933. Hence, it’s not tradable as security in US jurisdictions.
This is not the first time Amun has bridged the gap between traditional and crypto market. Earlier this month it introduced a Bitcoin Suisse ETF under the ticker ABBA. In essence, ABBA is 90% Bitcoin and 10% Ether. And prior to this Amun had launched 6 ETFs.
At the beginning of every month, Binance uses 20% of its profits to buy BNB. And burns them to maintain the scarcity of BNB. Currently, BNB is finding its utility in paying the exchange fees and supporting the development of Binance platforms.
Previously, we covered how the SEC approaches ETFs. We will have to wait and watch what Binance achieves by entering the regulated ETP market.
