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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under the authority of the Bank Secrecy Act and is required to comply with certain FinCEN regulations thereunder; the Trust is required to obtain a license or make a registration under any state law regulating money transmitters, money services businesses, providers of prepaid or stored value or similar entities, or virtual currency businesses; the Trust becomes insolvent or bankrupt; the Custodian resigns or is removed without replacement; all of the Trust’s assets are sold; the Sponsor determines that the aggregate net assets of the Trust in relation to the expenses of the Trust make it unreasonable or imprudent to continue the affairs of the Trust; the Sponsor receives notice from the IRS or from counsel for the Trust or the Sponsor that the Trust fails to qualify for treatment, or will not be treated, as a grantor trust under the U.S. Internal Revenue Code of 1986, as amended (the “Code”);

if the Trustee notifies the Sponsor of the Trustee’s election to resign and the Sponsor does not appoint a successor trustee within 180 days; or

the Sponsor determines, in its sole discretion, that it is desirable or advisable for any reason to discontinue the affairs of the Trust.

The Sponsor may determine that it is desirable or advisable to discontinue the affairs of the Trust for a variety of reasons. For example, the Sponsor may terminate the Trust if a federal court upholds an allegation that BNB is a security under the federal securities laws.

The death, legal disability, bankruptcy, insolvency, dissolution, or withdrawal of any shareholder (as long as such shareholder is not the sole shareholder of the Trust) will not result in the termination of the Trust, and such shareholder, his or her estate, custodian or personal representative will have no right to a redemption or value such shareholder’s Shares. Each shareholder (and any assignee thereof) expressly agrees that in the event of his or her death, he or she waives on behalf of himself or herself and his or her estate, and he or she directs the legal representative of his or her estate and any person interested therein to waive the furnishing of any inventory, accounting or appraisal of the assets of the Trust and any right to an audit or examination of the books of account for the Trust, except for such rights as are set forth in Article VIII of the Trust Agreement relating to the books of account and reports of the Trust.

Upon dissolution of the Trust and surrender of Shares by the shareholders, shareholders will receive a distribution in U.S. dollars after the Sponsor has sold the Trust’s BNB, if applicable, and has paid or made provision for the Trust’s claims and obligations.

If the Trust is forced to liquidate, the Trust will be liquidated under the Sponsor’s direction. The Sponsor, on behalf of the Trust, will engage directly with Digital Asset Markets to liquidate the Trust’s BNB as promptly as possible while obtaining the best fair value possible. The proceeds therefrom will be applied and distributed in the following order of priority: (a) to the expenses of liquidation and termination and to creditors, including shareholders who are creditors, to the extent otherwise permitted by law, in satisfaction of liabilities of the Trust other than liabilities for distributions to shareholders and (b) to the holders of Shares pro rata in accordance with the respective percentages of Shares that they hold. It is expected that the Sponsor would be subject to the same regulatory requirements as the Trust, and therefore, the markets available to the Sponsor will be the same markets available to the Trust.

Governing Law

The Trust Agreement and the rights of the Sponsor, Trustee and shareholders under the Trust Agreement are governed by the laws of the State of Delaware.

Description of the Custodian Agreement

The Custodian Agreement establishes the rights and responsibilities of the Custodian, the Sponsor and the Trust with respect to the Trust’s BNB which is held in accounts maintained and operated by the Custodian, as a fiduciary with respect to the Trust’s assets. For a general description of the Custodian’s obligations, see “—Service Providers of the Trust—The Custodian.”

Custody of BNB typically involves the generation, storage and utilization of private keys. These private keys are used to effect transfer transactions (i.e., transfers of BNB from an address associated with the private key to another address).

Access to the Custody Account; Transfers and Storage

The Custodian has been engaged to keep the Trust’s BNB in safe custody. The Custodian will provide the Sponsor with the information that is necessary for third parties to make deposits to the Accounts. To support the Trust’s ordinary course deposits and withdrawals, the Custodian’s services allow the Trust to deposit BNB from a public blockchain address into the Accounts and to withdraw BNB from the Accounts to a public blockchain address pursuant to authorized Instructions. Subject to completed blockchain transactions to the provided recipient addresses and completion of required transaction screening by the Custodian, the Custodian will credit all BNB properly authorized by the Trust or the Sponsor to the Accounts. The Custodian will only allow withdrawals of BNB from the Account based on authorized instructions from the Sponsor or the Trust.

The Custodian has agreed to hold Trust assets for the benefit of the Trust as the entitlement holder, such assets will not be commingled with the Custodian's proprietary assets. While other types of assets held in a similarly-segregated manner have been deemed not to be part of the asset custodian's bankruptcy estate under various regulatory regimes, bankruptcy courts have not yet fully addressed the appropriate treatment of custodial holdings of digital assets and any such determination may be highly fact-specific.

Under the Custodian Agreement, the Custodian serves as a fiduciary and custodian on the Trust’s behalf, and the BNB held in the Trust’s Accounts are considered fiduciary assets that remain the Trust’s property at all times and are not general assets of the Custodian. The Custodian has agreed that it will not reflect such BNB as an asset on the Custodian’s balance sheet and will not, directly or indirectly, lend, pledge, hypothecate or re-hypothecate any of the Trust’s BNB without the Trust’s consent. See “Risk Factors—Risk Factors Related to the Trust and the Shares—the Trust relies on third-party service providers to perform certain functions essential to the affairs of the Trust and the replacement of such service providers could pose challenges to the safekeeping of the Trust’s BNB and to the operations of the Trust.”

Safekeeping of BNB

The Custodian will receive the Trust’s BNB for storage and will retain custody of the private keys with respect to the Custodial Account. Upon receipt, the Custodian will custody the BNB in the Accounts. The Custodian Agreement provides that the location of the Trust’s digital assets shall be the United States, subject to specified exceptions for security or disaster-recovery events. The Trust’s BNB held by the Custodian are held in segregated custody accounts and therefore are not commingled with the Custodian’s or other customer assets.

Insurance

Pursuant to the terms of the Custodian Agreement, the Custodian is required to maintain certain insurance coverage, which the Sponsor believes is industry standard. The Custodian Agreement requires the Custodian to maintain insurance coverage in such types and amounts as are commercially reasonable for the Custodial Services, and any insurance related to theft of Digital Assets applies to Custodial Services only and not Wallet Services for non-custodial accounts.

Moreover, while the Custodian maintains certain capital reserve requirements depending on the assets under custody and to the extent required by applicable law, and such capital 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”).