Popular cryptocurrency exchange token Binance Coin will act as the primary asset to a new exchange traded product (ETP).
Malta-based crypto exchange Binance, the largest by volume, has announced a partnership with fintech firm Amun to cultivate a USD-denominated ETP.
The product is listed on Switzerland’s SIX stock exchange under the ticker ABNB.
ABNB can be purchased through a bank or brokerage like a stock.
The ETP will be backed by $20 million worth of Binance coins (BNB), approximately 25 percent of the firm’s total crypto assets under management.
Since launching their first crypto ETP in Nov. 2018, Amun’s eight crypto-ETPs are backed by $75 million in total assets.
Regulated ETP provide avenues for traditional investors to gain exposure to the cryptocurrency sector.
BNB has a total market capitalization of $2.84 billion, placing it as the eighth largest cryptocurrency.
Daily transaction volume for BNB usually exceeds $100 million.
BNB is used to pay transaction fees on the exchange and for Binance’s development and projects marketing.
The exchange completed its initial coin offering (ICO) of 100 million BNB in 2017, raising approximately $15 million.
Binance has capped the supply of BNB at 200 million tokens, of which the firm plans to “burn” half to prevent depreciation.