bStocks
Overview
bStocks are tokenized securities that provide synthetic exposure to publicly traded stocks and exchange-traded funds (ETFs) through blockchain-based tokens. They allow eligible users to trade stock-linked assets on Aster with the flexibility of digital assets while maintaining exposure to the economic performance of the underlying securities.
Unlike traditional stock markets that operate during limited trading sessions, bStocks trade 24 hours a day, 7 days a week, including weekends and public holidays, allowing users to react to global market events at any time.
Each bStock is designed to represent the economic value of a specific underlying security. Although bStocks closely track the performance of the referenced stock, they are not direct shares of the issuing company.
What are bStocks?
A bStock is a blockchain-based tokenized security that references a publicly traded company or ETF.
Each bStock is intended to be backed by corresponding underlying securities or other eligible assets held through the applicable custody arrangements. This structure allows users to gain market exposure while trading entirely within the digital asset ecosystem.
Holding a bStock provides exposure to the economic performance of the underlying security, including supported corporate actions such as dividend reinvestments and stock splits.
However, owning a bStock is different from owning the underlying shares directly.
Holding a bStock does not provide:
Shareholder ownership
Voting rights
Attendance rights at shareholder meetings
Direct dividend payments
Direct communication from the issuing company
Rights to participate in corporate governance
Instead, bStocks are designed to reflect the economic performance of the underlying security through the mechanisms described throughout this documentation.
bStocks vs Traditional Stocks
Feature
Traditional Stocks
bStocks
Trading Hours
Exchange trading hours
24/7, including weekends
Ownership
Direct shareholder
Synthetic economic exposure
Voting Rights
Yes
No
Direct Dividend Payment
Yes
No (automatically reinvested)
Corporate Actions
Processed by broker
Reflected through Multiplier adjustments
Settlement
Traditional securities settlement
On-chain settlement
Trading Venue
Traditional exchanges
Aster Spot Market
Key Features
24/7 Trading
Unlike traditional equity markets, bStocks can be traded at any time, allowing users to manage positions regardless of whether the underlying stock exchange is open.
Continuous Market Access
Users can buy and sell supported bStocks directly on Aster Spot without waiting for traditional market hours.
Tokenized Market Exposure
bStocks provide exposure to the price performance of publicly traded companies and ETFs through blockchain-native tokens.
Corporate Action Support
Supported corporate actions, including dividend reinvestments, stock splits, reverse splits, mergers, and other eligible events, are reflected through the platform's corporate action processing framework.
Automatic Dividend Reinvestment
Eligible cash dividends are automatically reinvested through the Multiplier mechanism, allowing investment value to compound over time without requiring manual action.
Conversion Support
Eligible users may convert between supported securities positions and their corresponding bStocks, subject to product availability and applicable requirements.
How bStocks Work
Each bStock references a specific underlying listed security.
The market price of a bStock is determined through normal market trading on Aster. Buyers and sellers continuously trade the token while market makers help provide liquidity.
Although bStocks are designed to closely follow the underlying security, they remain independent market instruments. As a result, the trading price of a bStock may not always exactly match the current price of the underlying stock.
Corporate actions affecting the underlying security are processed through Aster's adjustment mechanisms to maintain the intended economic exposure over time.
Trading bStocks
Buying bStocks
Users can purchase supported bStocks directly from the Aster Spot market, just like other supported digital assets.
Trading is available 24 hours a day, 7 days a week, allowing continuous market participation even when traditional stock exchanges are closed.
Once purchased, bStocks appear in the user's account and may be held, traded, or converted where supported.
Selling bStocks
Users may sell their holdings at any time while trading is available Orders are matched through the Aster Spot order book, and execution depends on available market liquidity.
Converting Between Securities and bStocks
Eligible users may convert supported securities positions into the corresponding bStocks, or convert supported bStocks back into their underlying securities, subject to eligibility requirements, operational availability, and applicable product rules.
This conversion mechanism allows users to move between traditional securities exposure and blockchain-based tokenized exposure while maintaining exposure to the same underlying asset.
Pricing
The price of a bStock is determined by market supply and demand on Aster Although each bStock references an underlying listed security, its trading price may differ from the current market price of that security.
Price differences can occur for a variety of reasons, including:
Market liquidity
Bid-ask spreads
Market maker pricing
Trading outside traditional stock market hours
Supply and demand
Corporate action processing
Market volatility
Operational adjustments
As a result, a bStock may occasionally trade at either a premium or a discount relative to the underlying security. This behavior is normal for tokenized markets and reflects independent price discovery while maintaining long-term economic exposure to the referenced asset.
Understanding Price Discovery
Unlike traditional equities, which trade only during exchange operating hours, bStocks continue trading around the clock.
When the underlying stock market is open, market participants continuously incorporate publicly available pricing information into the bStock market.
When the underlying market is closed, trading continues based on user activity, market expectations, and available liquidity. During these periods, bStock prices may move independently from the underlying security's most recent closing price as traders react to news, earnings announcements, macroeconomic developments, or other market events.
Because of this continuous trading model, bStocks provide uninterrupted price discovery while maintaining exposure to the underlying security.
Corporate Actions
A corporate action is an event initiated by the company or fund underlying a bStock that may affect its value, structure, or outstanding shares.
To ensure bStocks continue to reflect the economic characteristics of the underlying security, Aster processes supported corporate actions through its corporate action framework.
Depending on the event, adjustments may be applied through the Multiplier mechanism, balance adjustments, asset conversions, or other operational processes designed to preserve users' economic exposure.
Supported corporate actions include:
Cash dividends
Stock splits
Reverse stock splits
Mergers and acquisitions
Spin-offs
Rights offerings
ETF distributions
Delistings
Liquidations
Other supported corporate actions
The processing method may vary depending on the nature of the event and operational requirements.
Dividend Reinvestment
Many publicly listed companies periodically distribute a portion of their earnings to shareholders in the form of dividends.
For traditional stockholders, these dividends are generally received as cash payments.
For bStocks, eligible dividends are handled differently. Instead of receiving a separate cash distribution, eligible dividend proceeds are automatically reinvested into the underlying security. The reinvestment is then reflected through an adjustment to the Multiplier, allowing holders to maintain continuous exposure without requiring any manual action.
As a result:
No separate dividend payment is credited to your account.
Your raw on-chain token balance remains unchanged.
Your displayed bStock balance increases automatically after the dividend is processed.
Future dividends continue to compound through subsequent Multiplier adjustments.
This automatic reinvestment mechanism enables long-term compounding while simplifying dividend processing for users.
Withholding Tax
Cash dividends are subject to applicable withholding taxes before reinvestment. For dividends paid by U.S.-listed companies, a standard 30% U.S. withholding tax is applied before the remaining amount is reinvested through the Multiplier mechanism. As a result, the increase in your displayed bStock balance reflects the net dividend amount after applicable withholding taxes and other adjustments.
Dividend Processing
The dividend lifecycle generally follows four stages:
Stage
Description
Dividend Declaration
The underlying company announces a dividend.
Ex-Dividend Date
Eligibility for the dividend is determined.
Dividend Processing
The net dividend amount is reinvested into the underlying security after applicable deductions.
Multiplier Update
The Multiplier is adjusted to reflect the additional economic exposure.
Once processing is complete, the updated balance is reflected automatically on Aster.
No manual claim is required.
Ex-Dividend Date
The Ex-Dividend Date determines whether a holder is eligible to receive a particular dividend.
To qualify for a dividend, users must hold the corresponding bStock before the Ex-Dividend Date.
Purchases made on or after the Ex-Dividend Date are not eligible for that dividend distribution.
A simple illustration:
Purchase Time
Dividend Eligibility
Before Ex-Dividend Date
Eligible
On Ex-Dividend Date
Not Eligible
After Ex-Dividend Date
Not Eligible
The Ex-Dividend Date functions similarly to a snapshot mechanism. Ownership is determined before the specified cutoff, and only eligible holdings participate in that dividend cycle.
Record Date
The Record Date is the date on which eligible holders are determined for dividend processing.
After the Record Date, Aster processes the dividend reinvestment and updates the corresponding Multiplier.
Users do not need to take any action during this process.
Stock Splits
A stock split increases the number of outstanding shares while proportionally reducing the price per share.
Although the number of shares changes, the total investment value remains unchanged immediately after the split.
For example:
Before Split
After 2-for-1 Split
1 Share @ $400
2 Shares @ $200
Total Value: $400
Total Value: $400
For bStocks, stock splits are reflected through the Multiplier rather than issuing additional on-chain tokens.
After processing:
Your displayed balance increases.
The price per token decreases proportionally.
Your overall market value remains substantially unchanged, excluding normal market price movements.
Reverse Stock Splits
A reverse stock split combines multiple shares into fewer shares while proportionally increasing the price per share.
For example:
Before Reverse Split
After 1-for-10 Reverse Split
100 Shares @ $5
10 Shares @ $50
Total Value: $500
Total Value: $500
Like stock splits, reverse splits are processed through Multiplier adjustments, allowing the economic value of holdings to remain aligned with the underlying security.
Other Corporate Actions
Certain corporate events may require additional processing to preserve the intended economic exposure of bStocks.
Examples include:
Mergers and Acquisitions
If the underlying company merges with or is acquired by another entity, Aster may adjust the corresponding bStock according to the terms of the transaction.
Depending on the event, holdings may be converted into a new asset, adjusted using an updated Multiplier, or processed using another appropriate method.
Spin-Offs
When a company distributes shares of a newly created business to existing shareholders, Aster will determine an appropriate treatment based on the specific corporate action.
This may include balance adjustments, Multiplier updates, cash-in-lieu processing, or other supported mechanisms.
Rights Offerings
Where applicable, eligible rights offerings may be reflected through adjustments designed to preserve the economic exposure of bStock holders.
Processing methods depend on the characteristics of the underlying corporate action.
ETF Distributions
For tokenized ETFs, distributions may be processed through the same framework used for dividend reinvestments or other supported corporate action adjustments.
Delistings
If an underlying security is delisted from its primary exchange, Aster will determine the appropriate treatment based on the circumstances of the event.
Possible outcomes may include:
Trading suspension
Asset conversion
Settlement
Delisting of the corresponding bStock
Other supported processing methods
Users will be notified whenever practicable before significant operational changes occur.
Liquidations
If the underlying issuer enters liquidation or another event that materially affects the security, Aster may suspend trading and process the affected bStock according to the applicable corporate action framework.
Corporate Action Notifications
Where reasonably practicable, Aster will notify users before supported corporate actions are processed.
Notifications may be delivered through:
In-app notifications
Announcements
Official documentation
Other supported communication channels
In certain circumstances, advance notice may not be possible due to issuer timing, operational requirements, regulatory obligations, or other external factors.
Regardless of notification timing, eligible corporate actions will be processed according to Aster's operational framework.
Understanding the Multiplier
The Multiplier is the mechanism Aster uses to reflect certain corporate actions without changing your raw on-chain bStock balance.
Instead of issuing or burning tokens whenever a supported corporate action occurs, Aster updates the Multiplier associated with the affected bStock. This adjustment preserves the intended economic effect of the corporate action while minimizing unnecessary on-chain transactions.
The Multiplier may be updated for events including:
Dividend reinvestments
Stock splits
Reverse stock splits
Mergers and acquisitions
Spin-offs
Rights offerings
ETF distributions
Other supported corporate actions
This approach allows your investment to continuously reflect the economic impact of these events while maintaining the same underlying token balance.
Raw Balance vs Displayed Balance
When viewing your holdings, you may notice that the balance shown on Aster differs from the raw token balance displayed by some blockchain explorers or wallets.
This difference is expected.
Your wallet stores the raw token balance, while Aster displays the effective balance, which is calculated by applying the current Multiplier.
The relationship is straightforward:
Displayed Balance = Raw Balance × Current Multiplier
As corporate actions occur over time, the Multiplier changes, allowing your displayed balance to reflect the updated economic exposure without requiring any token transfers.
Why Does My Balance Change Without Receiving New Tokens?
Unlike many digital assets, bStocks generally do not distribute corporate actions by minting additional tokens into your wallet.
Instead, Aster updates the Multiplier.
As a result:
Your raw on-chain balance remains unchanged.
Your displayed balance may increase or decrease.
Your total economic exposure is adjusted automatically.
No manual claim or additional transaction is required.
This allows supported corporate actions to be processed efficiently while maintaining a consistent user experience.
Example 1 — Dividend Reinvestment
Suppose you hold 10 bStocks representing a company that declares a cash dividend.
Before the dividend:
Item
Value
Raw Balance
10.000
Multiplier
1.000
Displayed Balance
10.000
After the dividend is processed:
Item
Value
Raw Balance
10.000
Multiplier
1.008
Displayed Balance
10.080
Although no new tokens were transferred to your wallet, your displayed balance increases automatically because the dividend has been reinvested through the Multiplier.
Example 2 — Stock Split
Assume the underlying company announces a 2-for-1 stock split.
Before the split:
Item
Value
Raw Balance
10.000
Multiplier
1.000
Displayed Balance
10.000
After the split:
Item
Value
Raw Balance
10.000
Multiplier
2.000
Displayed Balance
20.000
Your displayed holdings double, while the market price per bStock is expected to adjust proportionally. Your overall portfolio value remains substantially unchanged, excluding normal market price movements.
Example 3 — Reverse Stock Split
Now suppose the company performs a 1-for-10 reverse split.
Before the split:
Item
Value
Raw Balance
10.000
Multiplier
1.000
Displayed Balance
10.000
After the split:
Item
Value
Raw Balance
10.000
Multiplier
0.100
Displayed Balance
1.000
Your displayed holdings decrease while the price per bStock increases proportionally, preserving the overall economic value of your position.
Trading During Corporate Actions
Certain corporate actions require operational processing before trading and settlement can resume normally.
Depending on the event, some services may be temporarily paused while balances, conversions, and corporate action adjustments are completed.
Typical processing is shown below.
Corporate Action
Trading
Deposit
Withdrawal
Conversion
Dividend Reinvestment
Usually Available
May be Paused
May be Paused
May be Paused
Stock Split
May be Paused
Paused
Paused
Paused
Reverse Split
May be Paused
Paused
Paused
Paused
Merger / Acquisition
Subject to Processing
Subject to Processing
Subject to Processing
Subject to Processing
Delisting
Suspended
Suspended
Suspended
Subject to Processing
Actual service availability may vary depending on the specific corporate action and operational requirements.
Once processing has been completed, affected services will resume automatically.
Price Behaviour During Market Closures
Unlike traditional stock exchanges, bStocks continue trading 24 hours a day, 7 days a week, including weekends and public holidays.
When the underlying stock market is closed, bStock prices continue to be determined by supply and demand on Aster.
During these periods, prices may move independently of the underlying security's most recent closing price as market participants respond to news, earnings announcements, macroeconomic events, or changing market expectations.
When the underlying market reopens, prices may continue adjusting as new information becomes available.
Liquidity Considerations
Although bStocks are supported by market makers and continuous trading, liquidity conditions may vary between assets.
Depending on market conditions, users may experience:
Wider bid-ask spreads
Lower order book depth
Increased short-term volatility
Partial order fills for large market orders
Temporary price deviations from the underlying security
These conditions are normal characteristics of actively traded financial markets and may become more pronounced during periods of elevated volatility or major corporate events.
Risks & Important Considerations
Before trading bStocks, users should understand the following:
Synthetic Exposure
bStocks provide economic exposure to an underlying security but do not represent direct ownership of company shares.
Market Risk
The value of bStocks fluctuates with market conditions and may increase or decrease significantly over time.
Price Differences
A bStock may trade above or below the current market price of its underlying security due to liquidity, market demand, trading hours, and other market factors.
Corporate Action Risk
Corporate actions may result in temporary trading interruptions, balance adjustments, service pauses, or changes to the associated bStock.
Liquidity Risk
Market liquidity can vary across different assets and market conditions, which may affect execution prices and order completion.
Operational Risk
Certain services, including deposits, withdrawals, conversions, or trading, may be temporarily unavailable while corporate actions are being processed.
Product Understanding
Users should understand how dividend reinvestments, the Multiplier, and corporate action processing work before trading bStocks, as these mechanisms may affect balances, pricing, and portfolio valuations over time.
Frequently Asked Questions
1. What are bStocks?
bStocks are tokenized securities that provide economic exposure to publicly traded stocks or ETFs through blockchain-based tokens. They allow users to trade stock-linked assets on Aster while maintaining exposure to the performance of the underlying security.
2. Do I own the actual shares when I buy bStocks?
No. Holding a bStock does not make you a shareholder of the underlying company.
bStocks provide synthetic economic exposure and do not grant shareholder rights such as voting rights, direct dividend payments, shareholder communications, or participation in corporate governance.
3. Can I convert between bStocks and the underlying security?
Yes. Eligible users may convert supported securities into the corresponding bStocks and convert supported bStocks back into the underlying securities, subject to product availability and applicable requirements.
4. Can I trade bStocks at any time?
Yes.
bStocks are available for trading 24 hours a day, 7 days a week, including weekends and public holidays.
5. Why doesn't the bStock price always match the underlying stock price?
Although bStocks reference publicly traded securities, their market price is determined by supply and demand on Aster.
Differences may occur due to:
Market liquidity
Bid-ask spreads
Trading outside traditional market hours
Market volatility
Corporate action processing
Other market conditions
As a result, bStocks may temporarily trade at a premium or discount to the underlying security.
6. How are dividends handled?
Eligible cash dividends are automatically reinvested through the Multiplier mechanism.
Instead of receiving a separate cash payment, the economic value of the dividend is reflected by increasing your displayed bStock balance after the dividend has been processed.
No manual claim is required.
7. What is the Ex-Dividend Date?
The Ex-Dividend Date determines eligibility for a dividend.
To receive the dividend for a particular distribution, you must hold the corresponding bStock before the Ex-Dividend Date.
Purchases made on or after the Ex-Dividend Date are not eligible for that dividend.
8. What is the Record Date?
The Record Date is the date used to determine which holders are eligible for dividend processing.
Following the Record Date, eligible dividends are processed and reflected through an update to the Multiplier.
9. What is the Multiplier?
The Multiplier is an adjustment factor used to reflect supported corporate actions without changing your raw on-chain token balance.
It is used for events including:
Dividend reinvestments
Stock splits
Reverse stock splits
Mergers
Spin-offs
Rights offerings
ETF distributions
Other supported corporate actions
10. Why is my displayed balance different from my wallet balance?
Your wallet records the raw number of bStock tokens you own, while Aster displays the effective balance after applying the current Multiplier.
This difference is expected and allows corporate actions to be reflected without transferring additional tokens.
11. Why didn't I receive additional tokens after a dividend?
Dividend reinvestments are processed through the Multiplier rather than by issuing new tokens.
Your raw on-chain balance remains unchanged, while your displayed balance increases automatically after dividend processing.
12. What happens during a stock split?
When the underlying company performs a stock split, Aster updates the Multiplier to reflect the new share ratio.
Your displayed balance increases proportionally, while the market price per bStock adjusts accordingly.
The overall economic value of your holdings remains substantially unchanged, excluding normal market price movements.
13. What happens during a reverse stock split?
A reverse stock split reduces the displayed number of shares while proportionally increasing the price per share.
Aster processes reverse splits through the Multiplier, preserving the intended economic exposure of your holdings.
14. What other corporate actions are supported?
Aster may support processing for a variety of corporate actions, including:
Cash dividends
Stock splits
Reverse stock splits
Mergers and acquisitions
Spin-offs
Rights offerings
ETF distributions
Delistings
Liquidations
Other supported corporate events
Processing methods depend on the specific event.
15. Will trading be interrupted during corporate actions?
Certain services may be temporarily paused while corporate actions are being processed.
Depending on the event, this may affect:
Trading
Deposits
Withdrawals
Conversions
Affected services will resume once processing has been completed.
16. Are bStocks backed by underlying securities?
Each bStock is intended to be backed by corresponding underlying securities or other eligible assets held through the applicable custody arrangements, subject to the product's operational framework.
17. Are bStocks suitable for long-term investing?
bStocks provide long-term economic exposure to publicly traded companies while automatically reflecting supported corporate actions such as dividend reinvestments and stock splits.
However, like any financial product, their value may rise or fall, and users should carefully evaluate the risks before investing.
18. What risks should I understand before trading bStocks?
Before trading bStocks, you should understand that:
bStocks are not direct ownership of company shares.
Prices may differ from the underlying security.
Corporate actions may temporarily affect trading and other services.
Market liquidity and volatility may impact execution prices.
The value of your investment may increase or decrease over time.
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