bstocks

Key Takeaways

bStocks are tokenized securities on Binance, each backed 1:1 by a US share held at a regulated custodian.

They can be traded 24/7 on Binance's spot market and usually settle in under a second, with no T+1 settlement windows.

As BEP-20 tokens on BNB Smart Chain, bStocks support self-custody and can be used across decentralized finance (DeFi) protocols, allowing users to use bStocks in staking, lending, and other activities.

Corporate actions like dividends and stock splits are processed automatically through an on-chain mechanism called the Multiplier.

Users can access fractional US stock exposure starting from as little as $5.

Introduction

Traditionally, buying and selling stocks comes with limitations: restricted market hours, multi-day settlement periods, and reliance on centralized brokerages for custody. Tokenization offers a way to address some of these constraints by representing traditional financial instruments as blockchain-based tokens.

bStocks are tokenized securities available on Binance that allow users to gain exposure to US stocks through blockchain technology. Each bStock is backed 1:1 by a corresponding US share held at a regulated custodian.

What Are bStocks?

bStocks are tokenized securities issued by BTech Holdings Limited, a Binance group affiliate. They are classified as Certificates representing certain Financial Instruments (paragraph 92, Schedule 1 to FSMR) and represent an interest in underlying securities held by the issuer.

It's important to note that bStocks are not direct ownership of shares in the underlying company. Rather, they provide exposure to the price performance and economic benefits of the underlying stock, such as dividend reinvestment. Every bStock is fully backed by a real US share held at a regulated custodian. This backing is verifiable at any time through Binance's Proof of Collateral page.

How Do bStocks Work?

24/7 trading and instant settlement

Unlike traditional stock exchanges that operate during set market hours, bStocks can be traded around the clock on Binance's spot market. Transactions settle in under a second, eliminating T+1 settlement windows and the need to wait for the next market session.

1:1 backing and conversion

Each bStock is backed 1:1 by the corresponding US share held at a regulated custodian. Eligible users can convert between stocks and the corresponding bStocks at a 1:1 ratio with no conversion fees. This service is arranged by Nest Trading Limited and is generally available 24/7, though it may be paused temporarily during corporate action processing or maintenance.

Self-custody and DeFi compatibility

bStocks are standard BEP-20 tokens on BNB Smart Chain, meaning you can withdraw them to any compatible crypto wallet for self-custody. You are never locked into a single brokerage.

bStocks also integrate with BEP-677 (Scaled UI Amount), a token standard designed to provide native support for real-world assets (RWAs) on BNB Smart Chain. This allows bStocks to be used across DeFi protocols.

Fractional access

You can start building a bStocks portfolio from as little as $5, making US stock exposure more accessible to a broader range of users.

How Are Dividends and Stock Splits Handled?

Corporate actions are processed automatically via an on-chain rebasing mechanism known as the Multiplier. No action is required on your part.

Dividends

When the underlying company pays a dividend, the net dividend value is automatically reinvested into the underlying stock. Your bStock balance increases proportionally via the Multiplier adjustment.

Dividends are subject to applicable US withholding tax (currently 30%) before reinvestment. No cash is distributed. The benefit is reflected through a proportional increase in your bStock balance via the Multiplier mechanism. The net dividend is typically credited ahead of the traditional pay date and applied to every fraction you hold.

Stock splits

Your bStock balance is automatically adjusted to reflect the new share ratio. For example, in a 2-for-1 split, your token quantity doubles and the price per token halves.

During corporate action processing, deposits, withdrawals, and conversions may be temporarily paused. Users receive advance notice via in-app notification. Spot trading is generally not suspended for dividend processing.

How To Obtain bStocks

There are three ways to obtain bStocks.

1. Buy the underlying stock with conversion enabled

Go to [Trade] > [Stock] and use any supported crypto (e.g., USDC, USD1, USDT, U, or BNB) to place a buy order for the underlying stock.

Toggle on the token conversion option before confirming your order. Once filled, your stock position is automatically converted into the corresponding bStock.

2. Convert existing stocks via token conversion

If you already hold stocks on the platform, you can use the token conversion function to convert them into bStocks at a 1:1 ratio with no fees. To do this:

Go to your Binance wallet.

Select the stock eligible for conversion in the asset tab.

Click or tap [Token Conversion].

Use the pencil icon to edit the amount.

Review the confirmation pop-up and confirm.

The reverse process (converting bStocks back to stocks) follows the same steps.

3. Buy bStocks directly on Binance Spot

Navigate to [Spot] > [bStocks], choose the token you want to buy, and trade it like any other crypto asset. bStocks spot trading is available 24/7.

For more information, please refer to the official announcement page.

Deposits and Withdrawals

Depositing bStocks

Depositing bStocks follows the same flow as a standard crypto deposit:

Search for the tokenized stock you want to deposit (e.g., TSLAB).

Select BNB Smart Chain (BSC) as the network.

Copy your deposit address and send tokens from your external wallet.

Important: Only BNB Smart Chain is currently supported. Sending tokens via any other network may result in loss of funds.

Withdrawing bStocks

You can withdraw bStocks to any compatible BNB Smart Chain wallet for self-custody. A network fee applies to cover BSC transaction costs, and the minimum withdrawal amount varies by token. Withdrawals are subject to transfer restrictions, smart contract controls, sanctions screening, and applicable law.

Precision and Rounding

Equities on the platform are recorded at up to 9 decimal places, while bStocks support up to 8 decimal places. Upon conversion, any residual fractional amount beyond 8 decimal places cannot be tokenized and is retained by the issuer as a rounding difference. This does not represent a fee or charge.

Third-Party Integration

Third-party platforms and DeFi protocols can integrate bStocks but bear responsibility for enforcing geographic restrictions. Binance provides a public REST API with a country eligibility endpoint that integrators can query to verify jurisdiction eligibility. The issuer reserves the right to blacklist wallet addresses that may violate applicable laws or smart contracts controls or sanctions.

Risks and Considerations

Like any financial product, bStocks carry risks that users should carefully evaluate:

Market risk: The value of bStocks can fluctuate based on the underlying stock's price.

Liquidity risk: Trading volumes may vary, potentially affecting your ability to buy or sell.

Issuer and custody risk: bStocks depend on the issuer and regulated custodian maintaining proper backing.

Regulatory risk: The availability of bStocks is subject to regulatory approval and may change.

Technology and operational risk: Smart contract issues, network disruptions, or maintenance could temporarily impact services.

Tax risk: Applicable withholding taxes and other tax obligations may apply.

Geographic restrictions: bStocks are not available in all jurisdictions and are not offered to US persons.

Users should review the applicable Prospectus (accessible only if located in the ADGM), Terms of Use, Exchange Rules (including the Exchange Procedures), Admission to Trading Notice, Minting and Redemption Product Terms, and Risk Warning before trading.

FAQ

What are bStocks?

bStocks are tokenized securities issued by BTech Holdings Limited, a Binance group affiliate. Each bStock is backed 1:1 by a real US share held at a regulated custodian. They are BEP-20 tokens on BNB Smart Chain, so they can be traded on Binance's spot market or withdrawn for self-custody.

Are bStocks the same as owning stocks directly?

No. bStocks are not direct ownership of shares in the underlying company. They provide exposure to price performance and economic benefits such as dividends, but they are structured as Certificates representing certain Financial Instruments rather than direct equity ownership.

How are dividends paid on bStocks?

Dividends are not paid out in cash. Instead, the net dividend value is automatically reinvested into the underlying stock and your bStock balance increases proportionally via the Multiplier mechanism. US withholding tax (currently 30%) applies before reinvestment.

Can I withdraw bStocks to my own wallet?

Yes. bStocks can be withdrawn to any compatible BNB Smart Chain wallet. Only BNB Smart Chain is supported at this time. Sending tokens via another network may result in permanent loss of funds. A network fee applies, and the minimum withdrawal amount varies by token.

Who can access bStocks?

bStocks are not available in all jurisdictions and are not offered to US persons. Users should check current eligibility requirements on Binance before attempting to access or trade bStocks. Binance provides a public REST API with a country eligibility endpoint for third-party integrators.

Closing Thoughts

bStocks bring traditional stock exposure on-chain through tokenization. By combining regulated custodian backing and automatic corporate action processing with blockchain-native features like 24/7 trading, instant settlement, and DeFi composability, bStocks aim to bridge the gap between traditional finance and crypto.

However, they are not without risk. As with any financial product, it's important to understand the product structure, review all applicable terms, and assess your own risk tolerance before getting started.

Further Reading

Introducing bStocks: Tokenized Securities 1:1 Backing with 24/7 Trading

What Are Tokenized Stocks?

What Are Real-World Assets (RWA) in DeFi and Crypto?

An Introduction to BNB Smart Chain (BSC)

What Is Tokenized Gold?

Disclaimer: bStocks Tokenized Securities are classified as Certificates representing certain Financial Instruments (paragraph 92, Schedule 1 to FSMR). bStocks are not stocks or shares and bStocks do not allow holders to directly own a share or stock in the underlying listed company. bStocks do not represent any affiliation with the underlying asset's issuer.  bStocks are offered through an Approved Prospectus in the ADGM and are not offered in any other jurisdiction. No public offer is made outside of the ADGM. Tokenized Securities are available only to eligible users in permitted jurisdictions on a secondary market basis only. It is your sole responsibility to ensure that accessing and trading Tokenized Securities is lawful in your jurisdiction before proceeding. Accessing this product from a jurisdiction in which it is prohibited or restricted does not create any liability or obligation on the part of Binance. We may restrict, suspend, reject, cancel, or unwind access or transactions if we determine, in our sole discretion, that your access or transaction may breach applicable law, product restrictions, eligibility criteria, sanctions requirements, or the relevant offering documents.

No information displayed in connection with Tokenized Securities is intended as an offer, solicitation, promotion, recommendation, or invitation to buy or sell securities in any jurisdiction. Tokenized Securities are not offered, sold, distributed, made available, or accessible in the United States or to, or for the account or benefit of, U.S. persons. The Tokenized Securities have not been and will not be registered under the U.S. Securities Act of 1933 or any U.S. state securities laws and a public offering of bStocks will not be conducted in the United States or any other jurisdiction (other than the ADGM). By accessing this product, you represent and warrant that you are not a U.S. person, are not located in the United States, are not acting for the account or benefit of any U.S. person, and will not access, purchase, sell, transfer, redeem, or otherwise transact in Tokenized Securities from within the United States. 

For more information, see the Terms of Use, Exchange Rules, Exchange Procedures, relevant Prospectus (if applicable to you and understanding that the offer is only made in ADGM, no public offer is being made elsewhere and viewing the prospectus does not constitute an invitation or solicitation outside ADGM), bStocks Minting and Redemption Product Terms, Admission to Trading Notice and Risk Warning.