02 - 1:1 Backing, Explained Simply
You’ll often see this phrase when talking about bStocks:
“Backed 1:1.”
But what does that actually mean?
For each bStock token issued, there is a corresponding real U.S. share held in custody.
So the structure is designed around:
1 bStock → 1 corresponding underlying share
The important part is the backing.
The underlying shares are held with a regulated custodian, while Binance also provides a Proof of Collateral page where the backing can be checked.
This is different from simply creating a token that follows a stock price.
The blockchain token has an underlying share supporting it.
That’s one of the core ideas behind bStocks.
Want the technical details?
Learn more on Binance Academy:
Binance Academy
Risk Disclaimer: Crypto assets carry risks. This is not financial advice. bStocks assets are not stocks and do not represent direct ownership of the underlying company.
#bStocks
You’ll often see this phrase when talking about bStocks:
“Backed 1:1.”
But what does that actually mean?
For each bStock token issued, there is a corresponding real U.S. share held in custody.
So the structure is designed around:
1 bStock → 1 corresponding underlying share
The important part is the backing.
The underlying shares are held with a regulated custodian, while Binance also provides a Proof of Collateral page where the backing can be checked.
This is different from simply creating a token that follows a stock price.
The blockchain token has an underlying share supporting it.
That’s one of the core ideas behind bStocks.
Want the technical details?
Learn more on Binance Academy:
Binance Academy
Risk Disclaimer: Crypto assets carry risks. This is not financial advice. bStocks assets are not stocks and do not represent direct ownership of the underlying company.
#bStocks
