Binance Highlights 1:1 Stock To bStock Tokenization Feature

Binance has highlighted a feature that allows eligible non-U.S. users to convert supported stock positions into bStocks at a 1:1 ratio and move them back into stocks when needed, according to CryptoNews. The offering is handled through regulated third-party custody arrangements.

Conversion Mechanics and Wallets

According to Binance, users have three main entry routes into bStocks: tokenizing a supported stock order upon placement, converting an existing stock position, or purchasing bStocks directly through Binance Spot. Nest Trading Limited handles the conversion service for existing holdings at a 1:1 ratio without extra conversion fees.

Once converted, bStocks can trade around the clock and be withdrawn as BEP-20 tokens to compatible BNB Smart Chain wallets. Converting bStocks back into traditional stock positions requires an eligible Stock Account and acceptance of relevant terms.

Corporate Actions and Regulations

Corporate actions such as dividends and stock splits operate differently compared to conventional brokerage accounts. Cash dividends from underlying companies are generally reinvested into the corresponding stock after applicable deductions, altering the user's bStock balance through an on-chain multiplier mechanism.

bStocks are structured as certificates representing financial instruments linked to underlying shares rather than direct equity ownership, and U.S. persons are excluded from accessing the products.

Key facts

• Binance permits eligible users to convert supported stocks into bStocks at a 1:1 ratio without conversion fees.
• bStocks are tokenized securities backed 1:1 by underlying shares held through regulated third-party custody arrangements.
• Users can withdraw bStocks as BEP-20 tokens to compatible BNB Smart Chain wallets.
• U.S. persons are restricted from accessing the bStocks product.