B20 standard enables tokenized stocks on Base with 1:1 backing, dividend/split multipliers, and full DeFi composability.
Tech & Launches ·
Tokenized stocks are now live on Base, built on the B20 standard, a token framework designed to handle real-world assets with regulatory requirements and dynamic characteristics. Each tokenized stock is fully backed 1:1 by actual US company shares held with a regulated custodian and available only to users in eligible jurisdictions outside the US. The B20 standard incorporates compliance controls including freeze and seize functionality to meet legal obligations, alongside mechanisms to track corporate actions and eligibility rules.
The core innovation addresses how dividends and stock splits work on-chain without disrupting liquidity pools or trading venues. Rather than issuing new tokens or rewriting account balances, B20 uses a multiplier value that adjusts when corporate actions occur. Tokens launch at a 1.00 multiplier; when a company pays a dividend, that amount—net of withholding tax and platform fees—raises the multiplier proportionally. A 2-for-1 stock split doubles the multiplier instead of doubling token supply, preserving existing pool reserves and pricing mechanics across decentralized exchanges.
The standard natively supports transfer restrictions tied to regulatory requirements, with policies stored in a shared registry so a single compliance update propagates across all assets using that rule. Conversion between tokens and the underlying shares requires reading the current multiplier, as one B20 token no longer permanently equals one share. Full ERC-8056 standard support is planned for a future Cobalt upgrade.