Binance Enhances Stock-to-Token Conversion Feature for Eligible Users

Binance has renewed focus on a feature that allows eligible users to convert supported stock positions into bStocks at a 1:1 ratio, a process that can be reversed when needed. The exchange announced this capability in an Oct. 6 post on X, though the feature was originally introduced in June. bStocks are tokenized securities backed by underlying shares held through regulated third-party custody arrangements. Users can trade these tokens 24/7 and withdraw them to compatible BNB Smart Chain wallets.

The conversion service between stocks and bStocks is handled by Nest Trading Limited without any additional fees. However, converting bStocks back into stocks requires an eligible Stock Account and compliance with relevant terms. Minor rounding differences may occur due to the different decimal place support between equity balances and bStocks.

Binance emphasizes that bStocks are not the same as direct company shares. Instead, they are certificates issued by BTech Holdings Limited, an affiliate of Binance, representing financial instruments linked to underlying shares. The Abu Dhabi Global Market Financial Services Regulatory Authority lists multiple bStocks on its official securities register, including certificates tied to companies like Adobe, AMD, Alphabet, Amazon, and Apple.

Corporate actions such as dividends and stock splits are managed differently for bStocks. Cash dividends are reinvested into the corresponding stock, adjusting the bStock balance through an on-chain mechanism. Stock splits, for example, would double the number of bStocks while halving their value. The service is generally available around the clock but may pause during technical maintenance or corporate action processing.

U.S. persons are ineligible for bStocks, as the product has not been registered under U.S. securities laws. Binance also offers separate conversion programs, including a promotional campaign allowing the conversion of third-party tokenized securities into bStocks with a fixed 1:1 rate and zero conversion fees until Oct. 11, 2026. Another campaign targets new users, offering rewards for qualifying bStocks transactions.