Binance‘s native digital currency will serve as the underlying asset to a new exchange traded product (ETP).
The world’s biggest cryptocurrency exchange by trading volume stated Wednesday it had joined forces with fintech company Amun to create the USD-denominated ETP.
Listed on Switzerland’s major stock exchange SIX under the ticker ABNB, the financial product can be obtained through a bank or brokerage in a form similar to stock.
Amun CEO Hany Rashwan said the ETP would at first be backed by $20 million worth of Binance coins (BNB), representing almost a quarter of the company’s total crypto assets under administration.
Since establishing the first crypto-backed ETP in November last year, Rashwan stated Amun’s suite of 8 crypto-ETPs is backed by $75 million in total assets.
The regulated ETP offers an avenue for investors to have exposure to one of the top-performing digital currencies. As per Messari, BNB has a $2.84 billion market capitalization, making it the eighth biggest cryptocurrency by that measurement. Lately, daily transaction volume generally tops $100 million.
BNB is utilized to pay transaction fees on the exchange and for Binance’s improvement and project advertising. The exchange finished its initial coin offering (ICO) of 100 million BNB in 2017, raising roughly $15 million.
Binance has topped the supply of BNB at 200 million tokens, of which the company intends to “burn” half to avoid depreciation.