Binance Introduces Tokenized US Stocks, Offering 24/7 Trading and Fractional Ownership
Binance, the global cryptocurrency exchange, has launched “bStocks,” tokenized securities that allow users to trade fractional shares of U.S. companies. Issued by BTech Holdings Limited, an affiliate of Binance, these bStocks are classified as certificates representing financial instruments, not direct ownership of underlying shares.
Trading and Conversion
Binance users can now trade and convert bStocks on the spot market around the clock, free from traditional market hour restrictions. The platform offers instant conversion between stocks and bStocks at a 1:1 ratio with no associated fees.
Backing and Verification
Each bStock is fully backed 1:1 by a U.S. share held in a regulated custodian. This collateral is publicly verifiable through a dedicated Proof of Collateral page, ensuring transparency and security.
Automated Corporate Actions
Corporate actions, such as dividends and stock splits, are automatically processed through a mechanism called the “Multiplier.” This feature reinvests net dividend values directly into the token, with no action required from the holder. Dividends are subject to applicable U.S. withholding tax (currently 30%) before reinvestment.
Accessible Investment
The bStocks offering allows investors to gain exposure to fractional U.S. stocks with an entry point as low as $5, making it accessible to a wider range of investors.
Blockchain Integration and Self-Custody
Transactions settle in under a second, eliminating the need for traditional settlement windows or waiting for market sessions. As bStocks are standard BEP-20 tokens, users have the flexibility to withdraw them to any compatible BNB Smart Chain wallet for self-custody or utilize them within decentralized finance (DeFi) protocols on the BNB Smart Chain.
Important Disclaimers
Binance has emphasized that information regarding Tokenized Securities is not an offer, solicitation, promotion, recommendation, or invitation to buy or sell securities in any jurisdiction. Tokenized Securities are not offered, sold, distributed, made available, or accessible in the United States or to U.S. persons. They have not been registered under U.S. securities laws, and no public offering will be conducted in the United States or other jurisdictions, with the exception of the ADGM. Users accessing this product must represent and warrant that they are not U.S. persons, are not located in the United States, are not acting for the benefit of any U.S. person, and will not transact in Tokenized Securities from within the United States.
The entities involved in this offering include Nest Exchange Limited, Nest Clearing and Custody Limited, and Nest Trading Limited.
Leave a Reply