bStocks Hits $100M AUM in Two Weeks – Who Can Trade?

Binance's tokenized stock product bStocks reached $100 million in assets under management two weeks after launch, the company said. The product targets users outside the U.S. and European Union.

bStocks represent 1:1 tokenized exposure to select U.S. stocks, backed by the underlying equities held by Binance-affiliated BTech Holdings Limited. Each token tracks the price of the corresponding stock. Holders do not get voting rights or dividends. The product operates under Abu Dhabi Global Market (ADGM) rules, Binance said.

Binance restricted access to bStocks in the U.S. and EU from launch, citing regulatory constraints. The company did not specify which rules triggered the exclusion. The exclusion follows a pattern of caution around tokenized securities in jurisdictions with strict securities laws. Users in other regions can trade bStocks on Binance Exchange and Trust Wallet.

For traders in eligible markets, bStocks offer fractional ownership and 24/7 trading, a feature that traditional brokerages cannot match. A user in Asia, for example, can buy or sell Apple or Tesla tokens outside U.S. market hours. The fractional model lowers the entry cost for high-priced stocks.

The product carries counterparty risk tied to BTech Holdings and Binance. Token holders rely on the issuer to maintain the 1:1 backing. Regulatory risk also looms: if a jurisdiction reclassifies bStocks as securities, Binance may have to halt service or face penalties. The ADGM framework provides some oversight. The product's legal status in other markets remains untested.

Binance has not disclosed plans to expand bStocks to new markets or add more stock tokens. The company's next move will depend on regulatory developments in key markets.