What is BNB crypto?

Summary

BNB is the crypto-asset used on BNB Smart Chain, a blockchain for Ethereum-compatible applications. BNB pays network fees and helps support validator selection and governance.

Published October 1, 2026updated October 1, 2026

Written by

Philip Palapelas

Software Engineer

Crypto investor since 2020. At Virtune since 2023, building the systems that track the company's crypto ETPs and their underlying assets.

Editorial reviewer

Andreas Severin

CSO

17+ years in derivatives, structured products and asset management. At Virtune since 2023, responsible for the company's institutional investors and distribution of its crypto ETPs.

BNB Smart Chain runs Ethereum-compatible smart-contract apps on its own network.
BNB pays fees even when an app transfers another asset.
Virtune BNB ETP holds BNB as collateral but cannot be used to pay network fees.

What happens on BNB Smart Chain?

BNB Smart Chain is a blockchain for applications, including services that exchange digital assets. Its smart contracts are compatible with Ethereum's tooling¹, allowing developers to use familiar tools on a separate network. BNB originated in 2017 in connection with the Binance exchange² and later took on a role in BNB Chain.

Imagine an app swapping one token for another. The smart contract applies the swap's rules and validators confirm the transaction¹. Neither token has to be BNB, but the user pays the network fee in BNB. That is the asset's direct connection to app activity.

What else does BNB do?

BNB can be staked to support validator selection³ and used in network governance¹. A user making a swap mainly encounters the fee; staking and governance concern how the network operates and changes. Validators do not make every app safe, and activity on a swap service does not set BNB's price.

BNB Smart Chain's validator arrangements also matter to a reader asking how decentralised the network is. Block production is carried out by a selected validator set³, with selection based on staked BNB rather than by one app operator alone. The distribution of stake therefore matters when assessing who can take part.

BNB directly or through an ETP

Direct BNB can pay fees and be used in network functions. Virtune BNB ETP instead provides BNB price exposure through a security. It is physically backed with BNB held as collateral⁴. The ETP investor does not hold BNB in a wallet and cannot use the security to pay fees, stake or vote.

The product is listed on Nasdaq Stockholm and Xetra.

Costs when buying Virtune BNB ETP

Cost	Charged by	When
Brokerage commission	Broker	On every purchase and sale
Difference between bid and ask price	Market	On every trade
Management fee, 1.95% per year	Issuer	Ongoing, from the product's value
Currency conversion	Broker, if applicable	If the product trades in another currency

The broker sets commission and currency conversion charges in its price list. The management fee is stated in the product's KID.

Risks to understand

BNB's price can change sharply. Apps on BNB Smart Chain have risks beyond those of the network. Direct holders manage wallet or custodian choices; the ETP adds issuer, custody and exchange-trading risks. Physical backing does not prevent a price loss. Crypto-assets can lose substantial value⁵.

Sources

BNB Chain: BNB Smart Chain overview
BNB Chain: BSC Is Now BNB Chain
BNB Chain: BSC Validator Overview
Virtune Investor Relations: Collateralization Methodology
EBA, EIOPA and ESMA (the European Supervisory Authorities): EU financial regulators warn consumers on the risks of crypto-assets