Binance to Update bStocks Collateral Values Around the Clock

Binance plans to recalculate collateral values for select bStocks while U.S. equity markets are closed, allowing eligible margin accounts to change in value during weekends and holidays as order-book prices move.

The collateral index previously held the last valid equity-market price when external data were unavailable. Under the revised method, it will continue to move during those periods, including daily maintenance windows. That means a margin account’s collateral value can change even when the shares whose performance the tokens track are not trading.

Binance will derive an impact mid-price from its order book and smooth it using an exponentially weighted moving average, a calculation that gives more weight to recent prices. A separate cap will limit movements in the index during off-hours pricing.

When external market data become available again, Binance will gradually blend the index prices from the two calculation modes. The transition is intended to limit an abrupt change between off-hours pricing and the method used when equity-market data are available.

The index price is the starting point for valuing a bStock posted as collateral. Binance then applies that token’s collateral ratio to determine how much value the account receives. Ratios differ by token and can change, so the credited collateral value is not necessarily the same as the index price.

A falling index can reduce credited collateral and alter an account’s Margin Level or Unified Maintenance Margin Ratio outside equity trading hours. The pricing change does not itself trigger liquidation; an account must breach its applicable threshold. Collateral values will update around the clock as the index changes.

bStocks track the price performance of listed equities without giving holders direct ownership of shares or shareholder rights. Binance accepts certain bStocks as collateral for Cross Margin and its two Portfolio Margin account types. U.S. persons are ineligible for bStocks, and the product cannot be accessed from within the United States.

Binance added four tokenized U.S. securities as margin collateral earlier this month. The revised index method for select bStocks is scheduled to begin Friday, Oct. 23, at 8 p.m. ET (00:00 UTC Oct. 24).