Binance now allows users to convert stocks into on-chain tokens

Binance refocuses on the two-way conversion of stocks and bStocks

Binance recently re-emphasized one of its core functions: eligible users can convert supported stock positions to bStocks on a 1:1 ratio and convert them back to traditional stocks when needed. This mechanism aims to provide users with greater asset flexibility.

Core Features of bStocks

Currently, eligible users can convert supported stocks to bStocks without paying a fee for the entire process. bStocks are tokenized securities fully backed in a 1:1 ratio by underlying shares held through regulated third-party custody arrangements. Users can convert bStocks back to stocks at any time, but this process requires users to have a qualified Stock Account.

In addition, bStocks supports round-the-clock transactions and can be extracted into a compatible BNB Intelligent Chain (BSC) wallet. It should be noted that U.S. users cannot access bStocks products. Binance launched the product to eligible users within the framework of a prospectus approved by the Abu Dhabi Global Market (ADGM).

Detailed explanation of the conversion mechanism

Binance pointed out in an announcement issued by the X platform that its "stocks" and "bStocks" products are interrelated and guided users to review existing conversion guidelines. According to the exchange's Frequently Asked Questions (FAQ), Nest Trading Limited is responsible for processing conversions between backing stocks and corresponding bStocks at a 1:1 rate and no conversion fee is charged.

It is worth noting that the October 6 post did not introduce a new conversion service. As early as June this year, Binance announced the launch of bStocks, which included the same 1:1 stock conversion function, as well as services for 24/7 spot trading and withdrawal from compatible wallets.

Nest Trading Limited provides conversion services for users with existing positions. Binance said that the process of converting shares to bStocks is completed on a 1:1 ratio and no additional conversion fees will be charged. The service is usually available 24/7, but conversions may be temporarily suspended during technical maintenance or while company actions (such as dividends, stock splits, etc.) are being processed.

If the reverse operation, that is, to convert bStocks back to the corresponding stocks, the user will need to meet the requirements of the stock account and accept the relevant terms before confirming the transaction. Due to differences in precision, slight rounding errors may occur after conversion. Binance records equity balances up to nine decimal places, while bStocks supports eight decimal places. According to the FAQ, amounts after the eighth decimal place will be retained with the issuer as rounding differences and will not be considered a conversion fee.

bStocks does not directly hold shares in the company

Although backed by a 1:1 underlying asset ratio, bStocks is not legally equivalent to direct ownership of company shares. Binance pointed out that BTech Holdings Limited, a subsidiary of Binance Group, issued these securities. The product is structured as a certificate representing a financial instrument linked to the underlying shares.

The person holding bStock does not directly become a shareholder of the company the token represents. Binance's product documents clearly state that holders cannot directly obtain direct ownership rights in companies such as Tesla, Nvidia or Apple simply by holding the corresponding bStock.

The Abu Dhabi Global Markets Financial Services Authority lists a number of BTech Holdings 'bStocks products in its official securities register, including certificates linked to Adobe, AMD, Alphabet, Amazon and Apple. A separate register of approved prospectuses published by ADGM also shows that BTech Holdings Limited is the issuer of the certificates and share certificates under the 2026 approval document.

Binance stated at the time of launch that each bStock is backed by the corresponding U.S. stock placed in a regulated custodian on a 1:1 ratio. The exchange provides a collateral proof page for users to check the support of underlying assets.

On-chain flows and other extensions

Once tokenized, bStocks can be moved out of the Binance platform. According to the FAQ, users can withdraw bStocks as BEP-20 tokens into compatible BNB smart chain wallets provided they comply with qualification checks, sanctions controls and applicable laws. Withdraws may involve network fees, and bStocks itself can be traded through Binance Spot during unusual stock market trading hours.

In related news reports, Binance has expanded bStocks to margin products, allowing qualified users in licensed jurisdictions to use selected tokenized securities as collateral.

Handling of corporate actions

bStocks 'treatment of corporate behavior is different from traditional brokerage accounts. Binance explained that cash dividends from underlying companies are usually reinvested in corresponding stocks after deducting applicable taxes and fees. Subsequently, the user's bStock balance will be adjusted through the chain "multiplier" mechanism. As a result, bStock holders will not receive cash dividends directly from Binance as traditional shareholders do.

Stock splits use a similar process. For example, in a 2-to-1 stock split, the amount of bStock held will double, while the value of each token will be halved. During the processing of company actions, deposit, withdrawal and conversion functions may be suspended, but spot trading does not need to be stopped due to dividend processing.

U.S. user restrictions

U.S. users are still excluded from this product. Binance stated that bStocks is not registered under the U.S. Securities Act of 1933 or state securities laws and must not be made available to or available to U.S. persons. Even though bStock tracks companies listed in the United States, holding the token does not provide direct voting rights, inspection rights, or shareholder communication rights with the underlying company.

Binance's equity products are operated independently of bStocks. Previously, Binance has provided qualified non-U.S. users with access to thousands of stocks through its stock trading infrastructure.

Other promotions

In addition to the standard stock-to-bStock service, Binance currently has other independent bStocks conversion plans:

• Third-party token conversion promotions: 允许符合条件的用户存入选定的第三方代币化证券，并将其转换为对应的bStocks。该促销活动提供固定的1:1转换率且零转换费，有效期至2026年10月11日23:59 UTC，设有每日限额。支持的资产包括与特斯拉、Strategy、Coinbase和Circle等公司挂钩的选定代币化证券。在此计划下，第三方代币不能在币安现货直接交易，只能持有或转换为bStocks。币安警告称，第三方代币化证券与bStocks在法律上是独立的产品，具有不同的结构、权利和风险。
• 新用户奖励活动： 2026年10月6日，币安宣布了另一项针对新用户和首次交易者bStocks的活动。符合条件的参与者通过在币安转换平台完成至少50美元等值的合格bStocks交易，可竞争分享100 SPCXB的代币券奖励池。
• 重复转换奖励： 同一活动的第二部分涵盖重复性bStocks转换，设有单独的10 SPCXB奖励池。该促销从2026年10月6日持续至11月2日23:59 UTC，参与者需满足资格和账户验证要求。