At first, I used to route any equity trading on Binance into a single model—the one I already know from bStocks: a token backed by a real underlying asset, and that asset simply changes form—from paper to on-chain.
TradFi stock perpetuals don’t fit this model, not because they represent a different form of the same asset. The contract tracks the real stock price, but it provides only a derivative exposure to it, without direct ownership—settlement is in USDT, and leverage and periodic funding show up exactly where, in my previous understanding, direct ownership of the underlying asset would be. Leverage adds risk that simply isn’t present when holding the underlying asset normally.
The difference turned out not to be how far the token drifts from the stock, but whether the product is actually backed by the stock itself. In bStocks, it’s no longer an issue—there is backing. In a TradFi perpetual, there isn’t: the stock remains only a benchmark for the price, without being backed by it.
#bStocks #TradFi
TradFi stock perpetuals don’t fit this model, not because they represent a different form of the same asset. The contract tracks the real stock price, but it provides only a derivative exposure to it, without direct ownership—settlement is in USDT, and leverage and periodic funding show up exactly where, in my previous understanding, direct ownership of the underlying asset would be. Leverage adds risk that simply isn’t present when holding the underlying asset normally.
The difference turned out not to be how far the token drifts from the stock, but whether the product is actually backed by the stock itself. In bStocks, it’s no longer an issue—there is backing. In a TradFi perpetual, there isn’t: the stock remains only a benchmark for the price, without being backed by it.
#bStocks #TradFi
