I have a serious technical question about custody. In crypto, we understand wallets and tokens. But now that we can trade traditional stocks here, how does it actually work behind the scenes? Is Binance buying the underlying shares on our behalf through a US broker, or are we trading a derivative product?
And most importantly for users in countries like Venezuela: if an account gets frozen or restricted due to regulatory issues, what happens to the backup of those stock assets? I really need to understand the counterparty risk before committing my funds! 📑🧐