What to know:
- Tokenized stocks now serve as collateral in Venus Protocol’s BNB Chain lending market.
- Venus became the first BNB Chain lending platform to accept stock-linked digital assets.
- bStocks are backed one-to-one by underlying public shares and settle on BNB Chain.
Tokenized stocks entered Venus Protocol’s BNB Chain lending market on June 20, allowing eligible users to borrow funds without selling their stock-linked holdings. The protocol added Binance-issued bStocks to its Core Pool. The launch further broadens Venus’ available collateral options.
In Venus’ Core Pool, the market puts bStocks next to Bitcoin, Ether, BNB, USDT, and USDC. Venus said these tokenized stocks are a digital representation of publicly traded stocks, with a 1:1 ratio to the underlying share. They are deployed directly on BNB Chain and function in the current lending ecosystem.
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Tokenized Stock Holders Gain New Borrowing Route
Users can access the service through Binance Wallet, Trust Wallet, and PancakeSwap. Venus explained that tokenized stocks offer the ability to unlock liquidity for eligible holders without losing their existing stake in the shares and market risk associated with them.
According to the protocol, the feature would be an alternative to selling stocklike assets when users require funds.
The launch adds to Venus’ list of collaterals, which includes cryptocurrencies and tokenized commodities. The protocol had previously hosted Matrixdock’s gold token XAUm in its lending markets.
For the first time, equity-linked digital assets enter the framework as an option for borrowers to provide as collateral.
Native.fi Product & Research supported it and mentioned working with Venus on bStocks liquidity and utility. Native provides the systems that support tokenized asset pricing and market activity.
That infrastructure is now linked with the new market, and the three wallet applications offer entry points for users.
Venus Expands as Binance Pushes Tokenized Equity Services
The update comes after a reported Venus security incident in March using a different token. After months of preparation, the attackers manipulated THE token’s price during the time of low liquidity and then attacked the lending markets of the protocol.
This event underscored the effect of low liquidity and price manipulation on lending markets that are dependent on collateral values.
According to the data, Venus is still BNB Chain’s biggest lending protocol, with an estimated value locked of approximately $1.47 billion.
The tokenized stocks launch also comes at a time when Binance is making a big move into blockchain-based equities and services. Binance recently started providing access to stock trading for non-U.S. users.
bStocks Holders Can Borrow Without Selling Stock Exposure
Tokenized stocks can now be posted as collateral on Venus rather than only providing equity price exposure. The feature merges stock-related digital assets and borrowing capabilities that are already provided on BNB Chain.
It becomes Venus’s first asset acceptance of assets linked to publicly traded stocks and broadens the use of bStocks in decentralized finance.
Tokenized stocks now have a collateral role in addition to giving blockchain-based equity exposure on Venus. The model will enable the eligible bStocks holders to hold their stock-based positions while raising capital through the Venus protocol instead of selling their stock-based holdings.
The announcement marks the first time that Venus has introduced digital assets linked to publicly traded stocks into its BNB Chain lending infrastructure.
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