Since launching in mid-June, Binance’s tokenized stock, known as bStocks, has attracted nearly 190,500 users, with over 41% of them having no prior experience in stock or futures trading on Binance. This surge highlights how tokenized equities are proving to be an entry point for new traders rather than just a niche product.
bStocks are essentially blockchain-based versions of actual US stocks, each fully backed by shares held by a custodian. The offering comes from BTech Holdings Limited, a Binance affiliate, which has regulatory approval from Abu Dhabi Global Market. The initial lineup includes tech giants like Nvidia (NVDAB), Tesla (TSLAB), Circle (CRCLB), Micron (MUB), and Sandisk (SNDKB). Unlike derivatives or price-tracking tokens, these represent real equity holdings, addressing concerns from past failed tokenized stock ventures.
Users benefit from zero-fee conversions between bStocks and their traditional counterparts with immediate settlement, along with the ability to withdraw tokens as BEP-20 assets on the BNB Smart Chain. This opens possibilities for self-custody and integration with decentralized finance protocols. Dividends pay out through an automatic reinvestment system that increases token balances with no additional fees.
Trading activity reveals a striking trend: nearly 45% of bStocks volume happens outside standard US market hours. This means investors across time zones can trade shares like Nvidia at any hour, even when the New York Stock Exchange and Nasdaq are closed, providing unique 24/7 access to global equity markets.
Binance’s approach differs from past attempts due to its regulatory foundation in ADGM and strict 1:1 custodial backing, which helps build trust. While US persons are excluded to avoid SEC conflicts, the product still taps into a significant international audience eager for after-hours trading.
