I thought for a long time that the risk in bStocks is simply "Binance trust"—one level, and that’s it. After looking into it more closely, it turns out there are actually three layers.
Level 1️⃣ — the exchange (Binance): this is where you trade, where your account and UI are, but the exchange itself is not the token issuer—it’s only a platform for buying/selling.
Level 2️⃣ — the issuer (BTech Holdings): a separate company affiliated with Binance that effectively issues the token and is responsible for the SPV structure. It is the entity that legally "promises" 1:1 backing.
Level 3️⃣ — the custodian: the organization that physically holds the real asset (e.g., GOOGL) under an ADGM/FSRA license. If something goes wrong here, neither the exchange nor the issuer will be able to help.
🧮 To simplify:
A problem at level 1 (e.g., a technical failure of the exchange) does not mean you lose the backing—the token is still tied to the real asset held by the custodian. But a problem at level 3 (the custodian) affects everyone, regardless of how reliable the exchange itself is.
Downsides: there are three levels—three different points where something theoretically could go wrong, not just one.
Have you ever wondered how many layers of trust are actually behind a single token, or did you think of it as "one exchange — one risk"? 👇
#bstocksсis $GOOGLB
Level 1️⃣ — the exchange (Binance): this is where you trade, where your account and UI are, but the exchange itself is not the token issuer—it’s only a platform for buying/selling.
Level 2️⃣ — the issuer (BTech Holdings): a separate company affiliated with Binance that effectively issues the token and is responsible for the SPV structure. It is the entity that legally "promises" 1:1 backing.
Level 3️⃣ — the custodian: the organization that physically holds the real asset (e.g., GOOGL) under an ADGM/FSRA license. If something goes wrong here, neither the exchange nor the issuer will be able to help.
🧮 To simplify:
A problem at level 1 (e.g., a technical failure of the exchange) does not mean you lose the backing—the token is still tied to the real asset held by the custodian. But a problem at level 3 (the custodian) affects everyone, regardless of how reliable the exchange itself is.
Downsides: there are three levels—three different points where something theoretically could go wrong, not just one.
Have you ever wondered how many layers of trust are actually behind a single token, or did you think of it as "one exchange — one risk"? 👇
#bstocksсis $GOOGLB
