# Why Ketju rejected Binance-Peg BTCB

- URL: https://riadefi.com/rejections/binance-bitcoin/
- Exposure: other
- Memo version: v1
- Reviewed: 2026-08-17
- Next review: 2026-11-17

## The memo

REJECTED. BTCB is a single-entity custodial claim on Bitcoin, not Bitcoin: Binance mints it 1:1 on BNB Smart Chain under an upgradeable-proxy contract Binance itself controls, and redemption requires depositing BTCB into a Binance.com account rather than a permissionless on-chain burn-and-claim. That combination — one entity holding custody of the reserve, upgrade authority over the token's logic, and the only redemption gate — is the same class of instrument this registry already rejects for CEX-issued liquid-staking tokens under the cex-wrapped-staking rule, applied here to Bitcoin instead of staked ETH or SOL. No independent reserve attestation for BTCB specifically was identified.

## What would reopen the file

- Binance publishes an independently audited, real-time proof-of-reserves attestation for BTCB specifically, not an aggregate exchange figure
- A genuinely permissionless burn-and-release redemption path is demonstrated that does not require a Binance.com account
- The upgradeable-proxy admin key is transferred to a disclosed multisig with published signers, or the contract is demonstrated immutable
- No realized freeze or blacklist event against BTCB holders occurs for 12 consecutive months after blacklist capability, or its confirmed absence, is publicly disclosed

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Published by Ketju Research (https://ketjuresearch.com). Educational analysis only; not legal, tax, compliance, or investment advice.
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