SEC Filing Document

Company: Grayscale BNB ETF
Ticker: GBNB
CIK: 2106762
Filing Type: S-1/A
Document Type: S-1/A
Date Filed: 2026-05-15
Accession Number: 0001193125-26-227224
Exchange: 
SIC Code: 6221
SIC Description: Commodity Contracts Brokers & Dealers
URL: https://www.sec.gov/Archives/edgar/data/2106762/000119312526227224/bnb_s-1_amendment_2.htm

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reserves may provide additional means to cover client asset losses, the Sponsor does not know the amount of such capital reserves, and neither the Trust nor the Sponsor have access to such information. The Trust cannot be assured that the Custodian will maintain capital reserves sufficient to cover losses with respect to the Trust’s digital assets. In addition, such insurance and capital reserves maintained by the Custodian are shared among all of their customers and are therefore not specific to the Trust. Deposits, Withdrawals and Storage The Custodian provides for: (i) holding accounts of the Trust’s BNB in the Accounts; (ii) the deposit of BNB from a public blockchain address into the respective account or accounts in which the Accounts are maintained; and (iii) the withdrawal of BNB from the Accounts to a public blockchain address the Trust controls (each such transaction is a “Custody Transaction”) (collectively, the “Custodial Services”).

The Custodian reserves the right to refuse to process or to cancel any pending Custody Transaction as required by law or in response to a subpoena, court order, or other binding government order or to enforce transaction, threshold, and condition limits, in each case as communicated to the Trust as soon as reasonably practicable where the Custodian is permitted to do so, or if the Custodian reasonably believes that the Custody Transaction may violate or facilitate the violation of an applicable law, regulation or applicable rule of a governmental authority or self-regulatory organization. The Custodian may suspend, restrict or terminate the Trust’s and the Sponsor’s access to the Custodial Services, and/or suspend, restrict or close the Accounts if the Trust or Sponsor has taken certain actions, including any prohibited use or prohibited business as set forth in the Custodian Agreement or if the Custodian is required to do so by a subpoena, court order, or other binding government order.

From the time the Custodian has verified the authorization of a complete set of instructions to withdraw BNB from the Accounts, the Custodian will have a limited amount of time to process and complete such withdrawal. The Custodian will ensure that initiated deposits are processed in a timely manner but the Custodian makes no representations or warranties regarding the amount of time needed to complete processing which is dependent upon many factors outside of the Custodian’s control.

The Custodian makes no other representations or warranties with respect to the availability and/or accessibility of BNB or the availability and/or accessibility of the Accounts or the Custodial Services.

Security of the Accounts

The Custodian has implemented and will maintain reasonable information security programs that include policies and procedures that are reasonably designed to safeguard the Custodian’s electronic systems and the Trust’s and the Sponsor’s confidential information from, among other things, unauthorized access or misuse. In the event of a Data Security Event (as defined in the Custodian Agreement), the Custodian shall promptly (subject to any legal or regulatory requirements) notify the Trust and the Sponsor in writing.

Record Keeping; Inspection and Auditing

Upon commercially reasonable notice to the Custodian, the Custodian will make available to the Trust copies of the books and records pertaining to the Trust that are in the possession or under the control of the Custodian. In addition, the Custodian Agreement provides that, upon thirty (30) days’ advance written notice, the Trust’s internal auditors or third-party accountants are permitted to inspect, take extracts from and audit the Custodian’s records maintained pursuant to the Custodian Agreement, subject to customary protections for the Custodian’s trade secrets, information related to other clients, and the security or availability of services the Custodian offers to other clients. The Sponsor relies on the SOC reports to provide assurances as to the controls that support the proof of existence of the Trust’s BNB at the Custodian. SOC reports are internal control evaluations conducted by independent auditors. A SOC 1 report addresses the controls at a service organization that are likely to be relevant to user entities’ internal control over financial reporting. A SOC 2 report addresses controls at a service organization relevant to security, availability, processing integrity, confidentiality, or privacy in order to support users’ evaluations of their own systems of internal control. The Custodian engages an independent auditor to conduct both a SOC 1, Type II audit and a SOC 2, Type II audit.

Once each calendar year, the Trust and the Sponsor will be entitled to request that the Custodian provide a copy of the SOC 1 report and SOC 2 report. The Custodian Agreement requires the Custodian to deliver the most recent SOC 1 and SOC 2 reports upon request by December 31 of each year. Such reports are required to be dated within one year prior to such request. The Custodian reserves the right to combine the SOC 1 and SOC 2 reports into a

comprehensive report. Between SOC reports, the Trust may also request quarterly letters of representation regarding any known changes or conclusions to the SOC reports (“SOC Bridge Letters”). In the event that the Custodian does not deliver a SOC 1 Report or SOC 2 Report, as applicable, the Sponsor and the Trust will be entitled to terminate the Custodian Agreement. In addition, the Custodian is required to notify the Trust as promptly as reasonably practicable of any event, occurrence or state of circumstances or facts that has a material adverse effect on the Custodian’s financial condition, business or operations, the Custodian’s safekeeping of the Trust’s BNB, or the Custodian’s ability to provide the services contemplated by the Custodian Agreement.

Standard of Care; Limitations of Liability

Under the Custodian Agreement, the Custodian will perform its obligations under the Custodian Agreement consistent with the professional skill and care provided by other reputable custodians of digital assets. Subject to the terms of the Custodian Agreement, the Custodian is not responsible for any loss or damage suffered by the Trust unless it results from a breach of the Custodian Agreement or the Custodian’s negligence, fraud or willful misconduct. The Custodian Agreement generally limits the Custodian’s aggregate liability to the aggregate fees paid or payable to the Custodian under the Custodian Agreement during the 12-month period immediately preceding the first incident giving rise to such liability. In addition, where the value of digital assets stored in a single cold storage address exceeds $150 million for five consecutive business days without being reduced, the Custodian’s maximum liability for that cold storage address is limited to $150 million. The Custodian recommends as a best practice that no single cold storage address hold digital assets in excess of $125 million in value, and has agreed to assist the Trust in implementing this practice at no additional cost. The Custodian is required to return to the Trust a quantity of digital assets equal to the quantity of any digital assets lost as a result of the Custodian’s negligence, fraud or willful misconduct. Further, in no event will the Custodian be liable for (i) losses which arise from the Custodian’s compliance with applicable laws, including sanctions laws administered by OFAC, or (ii) special, incidental, indirect, intangible or consequential damages, or lost profits or loss of business arising in connection with the Custodian Agreement. The foregoing limitations and exclusions of liability do not apply to the Custodian’s indemnification obligations, breach of its confidentiality or data security obligations, or violations of applicable law.

Indemnity

Under the Custodian Agreement, the Trust and the Custodian have each agreed to indemnify the other and certain related persons for third-party claims, demands, actions or proceedings and related liabilities, damages, losses, costs and expenses (including reasonable and documented attorneys’ fees and any fines, fees or penalties) arising from, among other things, the indemnifying party’s breach of the Custodian Agreement, breaches or inaccuracies in representations, warranties or covenants, violations of applicable law or third-party rights, and in each case to the extent arising from the indemnifying party’s breach of the Custodian Agreement, violation of applicable law or third-party rights, or its negligence, fraud or willful misconduct, subject in each case to a carveout where the claim directly results from the gross negligence, fraud or willful misconduct of the indemnified party. The Custodian’s indemnity also covers its gross negligence, fraud or willful misconduct in connection with the services and any security breach of the Custodian’s systems or controls affecting the Trust’s assets or accounts to the extent caused by Custodian’s negligence, fraud, or willful misconduct.

Fees and Expenses