#bStocks — This isn’t just an “action in token form”. And here’s where it’s easy to make a mistake
When you see TSLAB or NVDAB on Binance, it might seem like these are ordinary Tesla or NVIDIA shares, just available through the blockchain. In reality, legally this is a different instrument.
bStocks are tokenized securities. Each bStock is backed 1:1 by the corresponding real share, which is held by a regulated custodian. But the holder of bStock does not directly own the company’s share—instead, they get an economic exposure to the underlying asset.
An interesting detail concerns dividends. If the underlying share pays them out, Binance explains that the net amount after the relevant taxes doesn’t simply land as cash in your balance. It’s reinvested into the underlying share, and the number of bStocks is adjusted via the Multiplier mechanism.
So before using bStocks, I’d check not only the company’s chart, but also the product structure, the ownership rights, tax nuances, and whether it’s available in your jurisdiction.
Tokenization makes traditional assets more convenient for a blockchain environment, but it doesn’t turn them into ordinary cryptocurrency.
When you see TSLAB or NVDAB on Binance, it might seem like these are ordinary Tesla or NVIDIA shares, just available through the blockchain. In reality, legally this is a different instrument.
bStocks are tokenized securities. Each bStock is backed 1:1 by the corresponding real share, which is held by a regulated custodian. But the holder of bStock does not directly own the company’s share—instead, they get an economic exposure to the underlying asset.
An interesting detail concerns dividends. If the underlying share pays them out, Binance explains that the net amount after the relevant taxes doesn’t simply land as cash in your balance. It’s reinvested into the underlying share, and the number of bStocks is adjusted via the Multiplier mechanism.
So before using bStocks, I’d check not only the company’s chart, but also the product structure, the ownership rights, tax nuances, and whether it’s available in your jurisdiction.
Tokenization makes traditional assets more convenient for a blockchain environment, but it doesn’t turn them into ordinary cryptocurrency.