B-Tokens are Binance’s official name for a range of fully-collateralized wrapped tokens
. Each B-Token offers a transportable version of an original asset on a different blockchain. Let’s look at a quick example.
Imagine you hold ETH on Ethereum but want to take advantage of staking
opportunities on BNB Smart Chain (BSC)
. You cannot stake your ETH in its current ERC-20
form, so you’ll need to bridge
it to BSC with a compatible token standard. To do this, you’ll have to wrap your ETH and, in return, receive a BEP-2
ETH B-Token that’s BSC compatible.
Binance does this by taking your ETH and securely holding it as collateral. Your B-Token is minted 1:1 with the amount of ETH provided, and you can swap your B-Token back for the underlying collateral at any point, should you wish. This mechanism maintains a stable pegged price for the B-Token towards its underlying ETH collateral.
It’s important to note that B-Tokens are always fully collateralized. You can check our Proof of Collateral for B-Tokens
page to see the current state of our B-Token collateral wallets. See our What Are Wrapped Tokens?
Binance Academy article for more information on how token wrapping works.