12 - WHAT ACTUALLY BACKS A bSTOCK?
"Tokenized" doesn't automatically mean "unbacked."
With bStocks, the structure is different.
Each bStock is backed 1:1 by a corresponding underlying share held in custody.
That means the system has two layers:
UNDERLYING SECURITY
↓
held in custody
bSTOCK
↓
tokenized representation
And there's another interesting part:
Binance provides a Proof of Collateral page where the backing can be checked.
So instead of simply asking:
"Is this token backed?"
The better question is:
"How is the backing structured, and can it be verified?"
That's a much more useful way to look at tokenized securities.
For more educational content, explore Binance Academy:
https://academy.binance.com/en
#RWA
Risk Disclaimer: Crypto assets involve risks. This is not financial advice. bStocks are not stocks and do not represent direct ownership of the underlying company.
"Tokenized" doesn't automatically mean "unbacked."
With bStocks, the structure is different.
Each bStock is backed 1:1 by a corresponding underlying share held in custody.
That means the system has two layers:
UNDERLYING SECURITY
↓
held in custody
bSTOCK
↓
tokenized representation
And there's another interesting part:
Binance provides a Proof of Collateral page where the backing can be checked.
So instead of simply asking:
"Is this token backed?"
The better question is:
"How is the backing structured, and can it be verified?"
That's a much more useful way to look at tokenized securities.
For more educational content, explore Binance Academy:
https://academy.binance.com/en
#RWA
Risk Disclaimer: Crypto assets involve risks. This is not financial advice. bStocks are not stocks and do not represent direct ownership of the underlying company.
