Image Credit: Binance.com
- Binance launched a campaign for first-time users of its tokenized stock product, bStocks.
- Eligible users can convert supported stock positions into bStocks at a one-to-one ratio without fees.
- Access to the securities remains limited to permitted jurisdictions under Abu Dhabi Global Market rules.
Binance has renewed its push around bStocks, launching a campaign for first-time users of its tokenized stock product while highlighting an existing feature that lets eligible customers convert supported stock positions into bStocks at a one-to-one ratio.
The conversion feature has been available since bStocks launched in June. Users can move between direct stock holdings on Binance and blockchain-based securities without first selling the position for cash or crypto.
Existing Stock Positions Convert 1:1 Into bStocks
Eligible users holding a supported stock can convert it into the corresponding bStock without a conversion fee, including outside regular U.S. equity market hours.
Each bStock is backed one-to-one by an underlying share held with a regulated custodian. The tokens are issued by Binance affiliate BTech Holdings Limited and represent an interest in the underlying security rather than direct ownership of the listed company.
Dividends, stock splits and other corporate actions are reflected through Binance’s token mechanism.
bStocks Support 24/7 Trading and BNB Chain Withdrawals
bStocks are issued on BNB Smart Chain, allowing users to withdraw supported tokens to compatible self-custody wallets instead of keeping them solely on Binance.
The tokens can trade around the clock and may be used with supported DeFi applications. Some bStocks are also available as collateral for Binance cross-margin and portfolio-margin products.
Binance launched bStocks in June with tokenized versions of companies including Nvidia, Tesla and Circle and has continued adding supported securities since then.
Access Remains Limited by ADGM Rules
BTech’s bStocks prospectuses were approved by the Financial Services Regulatory Authority in Abu Dhabi Global Market, where the products are classified as certificates representing financial instruments.
The securities are available only to eligible users in permitted jurisdictions. They are not registered for sale in the United States and are unavailable to U.S. persons.
Binance’s Oct. 6 campaign puts new attention on the existing conversion feature rather than introducing a new tokenization system. The underlying stock-to-bStock mechanism, 24/7 trading and BNB Chain withdrawals have been available since the June launch.
