Binance Unlocks Wider Collateral Access with bStocks Expansion

Binance, a leading cryptocurrency exchange, has expanded access to its bStocks collateral service. The new feature allows eligible users to leverage supported tokenized stocks as collateral for margin and futures trading.

The expansion comes after the bStocks collateral service crossed $30 billion in total trading volume within 90 days of its launch in June 2023. Binance stated that the wider collateral functionality aims to increase the use of tokenized conventional market-linked assets in its trading network.

Eligible users can now leverage bStocks in line with applicable valuation haircuts, margin requirements, collateral ratios, regulatory safeguards, and account conditions. This allows them to retain exposure to compatible exchange-traded funds or stocks while utilizing the holdings to back their trading operations.

Shunyet Jan, Head of Exchange and Trading at Binance, noted that users can maintain consistent exposure to ETF-linked bStocks alongside using the same assets as collateral for risk management or pursuing tactical opportunities.