Binance has drawn fresh attention to its stock conversion service, which lets eligible users exchange supported shares for blockchain tokens called bStocks at a 1:1 ratio. Users can convert the tokens back into stocks without a conversion fee. The feature connects Binance’s stock accounts with tokens that trade around the clock.
The exchange described Stocks and bStocks as ‘connected’ in a post directing users to its conversion guide. Binance introduced the feature with its bStocks launch in June, so the latest message promotes an existing service rather than announcing a new product.
Binance bStocks Support Two-Way Stock Conversion
Nest Trading Limited handles conversions between supported stocks and their matching bStocks. Binance’s guide states, ‘Conversion’s at a 1:1 ratio, with no fees.’ However, users need an eligible Stock Account and must accept the relevant terms before converting tokens back into shares.
Users can obtain bStocks in three ways. They can choose to tokenize a supported stock purchase, convert an existing stock position or buy tokens directly through Binance Spot. The exchange makes spot trading available 24 hours a day, including weekends.
Conversions generally operate around the clock. However, Binance can pause them during technical maintenance or while processing dividends and stock splits. Its documentation therefore does not describe the service as continuously available without exceptions.
Small balance differences can occur since Binance records stocks to nine decimal places, while bStocks support eight. Any remaining fraction beyond the eighth decimal place stays with the issuer as a rounding difference, according to the exchange.
Token Holders do Not Become Company Shareholders
Binance says each bStock has backing from the corresponding underlying share held through regulated custody arrangements. BTech Holdings Limited, a Binance affiliate, issues the products as certificates linked to shares. Binance provides a proof-of-collateral page showing their backing.
Nevertheless, holding a bStock does not give the user direct ownership of shares in the company it tracks. Token holders do not receive direct shareholder rights, such as voting rights, simply by holding the corresponding token.
The tokens operate on BNB Smart Chain and can move to compatible external wallets. Withdrawals carry network fees and remain subject to eligibility rules, sanctions checks, transfer restrictions and applicable law.
Dividends follow a different process from cash payments in a brokerage account. After applicable deductions, dividends are automatically reinvested into bStock positions through the Multiplier mechanism, which adjusts the holder’s token balance. Stock splits similarly change the token quantity and its price.
Separate Conversion Offer Ends on Oct. 11
Binance currently supports a separate program that allows eligible users to deposit selected third-party tokenized securities and convert them into bStocks.That promotion offers a fixed 1:1 rate without conversion fees until Oct. 11, 2026, at 23:59 UTC, subject to daily limits.
Supported securities include tokens linked to Tesla, Strategy, Coinbase and Circle. Users can hold or convert these deposited third-party tokens, but Binance does not offer direct spot trading for them under the program.
The exchange states that third-party securities and bStocks have different legal structures, rights and risks. The promotional deadline does not apply to regular stock-to-bStock conversions.
Access remains restricted to eligible users in permitted jurisdictions. Binance offers bStocks under approved Abu Dhabi Global Market prospectuses and excludes U.S. persons, including when the tokens track U.S.-listed companies.
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