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This story was originally published on HackerNoon at: https://hackernoon.com/binance-opens-bstocks-collateral-to-every-eligible-user-as-tokenized-stock-volume-tops-$30-billion.
Binance has opened bStocks margin collateral to all eligible users. Since August the feature was gated to VIP 3 and above; from today any eligible account, incl
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Binance has opened bStocks margin collateral to all eligible users. Since August the feature was gated to VIP 3 and above; from today any eligible account, including VIP 0, can post supported tokenized stocks as collateral for futures and margin trading in Cross Margin and Portfolio Margin accounts.
Three things become possible. Users can borrow quote assets against bStocks to buy more bStocks with up to 5x leverage; they can convert existing stock holdings into bStocks while keeping dividend eligibility; and in a Portfolio Margin account a single bStock can serve as both collateral and the hedge against a futures short on the same name.
bStocks launched on 12 June with five names on BNB Chain. They passed $30 billion in cumulative trading volume in under 90 days. The outstanding value has doubled from $334 million in mid-July to $678 million in early September, within $15 million of Kraken's xStocks.
The whole tokenized-stock category has grown from under $1 billion in January to $3.1 billion in September. The 30-day data show holders, active addresses and transfer volume rising far faster than value held, which is what a token being put to work rather than parked looks like.
Haircuts, collateral ratios and liquidation rules apply; VIP 0 to 2 accounts get extra automatic risk controls that lift once an account returns to a safe level. bStocks are certificates issued under an ADGM prospectus, not shares. They are not available to US persons.
