How Binance handles stock corporate actions depends on whether you hold direct stocks or bStocks (tokenized stocks). Cash dividends for direct stocks are paid in USDC, and after a stock split your position quantity is automatically adjusted. For bStocks, dividends are automatically reinvested through a "multiplier" mechanism, so you do not receive separate cash. There is one key difference when it comes to voting: direct stock holders have voting rights, but bStocks holders do not.
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How to know if there is a corporate action to handle
Binance will alert you through in-app notifications, email (only for eligible users), and banners on the stock trading page. Relevant information also appears under the "Events" tab. Not all corporate actions can be announced in advance. If the issuer, regulatory requirements, or operational timing do not allow early notice, you may only see it close to the execution date.
Corporate actions fall into two categories. Mandatory corporate actions require no action from you and are processed automatically, such as cash dividends, stock splits, reverse splits, and mergers. Voluntary corporate actions require you to actively choose whether to participate before a deadline, such as tender offers or rights offerings.
Dividends: two types of holdings, two ways to receive them
Holding direct stocks: Cash dividends are paid to your account in USDC. Dividend payments may take up to 3 business days after the payment date to be completed. If a company offers a choice between "cash dividend or stock dividend," Binance processes it as cash by default.
Holding bStocks: Dividends are not paid separately in cash. bStocks automatically reinvest dividends through a multiplier mechanism. Your underlying token quantity stays the same, but the balance shown in the interface increases. For example, if a company pays a $1 dividend per share, your multiplier is adjusted upward accordingly, and 10 bStocks may be displayed as 10.05. For non-U.S. holders, a 30% U.S. withholding tax is deducted before reinvestment, unless a tax treaty applies to reduce the rate.
Stock splits: quantity changes, total value stays the same
Whether you hold direct stocks or bStocks, a stock split does not change your total position value. It only changes the number of units and the price per unit.
Direct stocks: If a company executes a 2:1 stock split, 1 share you hold becomes 2 shares, and the price per share is cut in half. Binance completes the adjustment automatically. You do not need to do anything.
bStocks: Stock splits are handled through multiplier adjustments. If NVDA executes a 10:1 split, your multiplier increases 10 times, the displayed bStock quantity changes from 1 to 10, and the price per unit becomes one-tenth of the original.
Voting: only available with direct stocks
Direct stock holders have voting rights in the underlying company. Binance sends a survey link by email so eligible users can vote on specific matters.
bStocks holders do not have voting rights. bStocks are certificates representing an interest in the underlying security, not direct ownership of the stock itself, so they do not carry corporate voting rights. If you need voting rights, Binance's official FAQ recommends converting bStocks back to direct stocks.
Also note: if your stocks are lent out under a securities lending program, you also do not have voting rights during the lending period. Voting rights belong to the borrower, and Binance pays an equivalent cash "manufactured dividend" to make up for the dividend you should have received.
What you should check
If you hold Binance stocks, log in and go to the stock trading page to see if there are any corporate action alerts. After a cash dividend is credited, you can see the USDC deposit in your account records. After a stock split, check whether your position quantity and cost price have been adjusted. If you hold bStocks, pay attention to changes in the multiplier. That is how you can tell whether a dividend has been reinvested.
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References
- Binance · Stock Services Corporate Action Processing Rules FAQ, no update date indicated; checked on 2024-12-01.
- Binance · Tokenized Stock bStocks Related Rules FAQ, no update date indicated; checked on 2024-12-01.
- Binance · Tokenized Stock bStocks Rights Description FAQ, no update date indicated; checked on 2024-12-01.
- Abu Dhabi Global Market · bStocks Product Public Prospectus, no update date indicated; checked on 2024-12-01.
- Binance · bStocks Product Attributes Announcement, no update date indicated; checked on 2024-12-01.
- Binance · Securities Trading Service User Agreement, no update date indicated; checked on 2024-12-01.
