Day 10. How bStocks are backed? 🔐
🔗 The mechanics of bStocks are built on a 1:1 principle. For every issued bStock, there is a corresponding real share held with a regulated custodian. In other words, the token is backed by a real underlying asset.
🏦 bStock is issued by BTech Holdings Limited, while the securities are held in a regulated custody system. At the same time, it’s important to understand: bStock is not direct ownership of the share and does not grant the holder, for example, voting rights like a regular shareholder. But it allows you to trade and earn, including dividends.
🔍 Binance provides a special Proof of Collateral page where you can verify information about bStocks coverage. This way, the link between the number of issued tokens and the underlying assets can be monitored, rather than simply trusting the platform’s statement.
💡 Therefore, in simplified terms, the entire structure can be represented as:
Real share 🏦 → regulated custodian → BTech Holdings → bStocks 🔗
⚠️ However, 1:1 backing does not mean there are no risks. There remain risks related to the issuer and the custodian, regulation, liquidity, and the technological infrastructure.
#bstockscis @BinanceCIS
🔗 The mechanics of bStocks are built on a 1:1 principle. For every issued bStock, there is a corresponding real share held with a regulated custodian. In other words, the token is backed by a real underlying asset.
🏦 bStock is issued by BTech Holdings Limited, while the securities are held in a regulated custody system. At the same time, it’s important to understand: bStock is not direct ownership of the share and does not grant the holder, for example, voting rights like a regular shareholder. But it allows you to trade and earn, including dividends.
🔍 Binance provides a special Proof of Collateral page where you can verify information about bStocks coverage. This way, the link between the number of issued tokens and the underlying assets can be monitored, rather than simply trusting the platform’s statement.
💡 Therefore, in simplified terms, the entire structure can be represented as:
Real share 🏦 → regulated custodian → BTech Holdings → bStocks 🔗
⚠️ However, 1:1 backing does not mean there are no risks. There remain risks related to the issuer and the custodian, regulation, liquidity, and the technological infrastructure.
#bstockscis @BinanceCIS