Tokenized US Stocks Wave Hits: xStocks Takes Crypto by Storm – A Must-Read Q&A for Newbies
Big news in crypto! Following the launch of tokenized Coinbase stocks in March, RWA issuer Backed has joined forces with US exchange Kraken to launch xStocks, a trading platform for tokenized US stocks. Just two days after launch, it’s already attracted heavyweights like Bybit, Raydium, and Chainlink, with platforms like GMGN and Backpack quickly opening trading windows. Some say this could be the crypto industry’s “counterattack” on the US stock market?
But excitement aside, questions are piling up: Can you redeem tokens for real stocks? How is the price pegged? What are the fees? Do you get dividends or voting rights? Our colleague Asher tested it out and found the basics are easy to grasp, but the details are tricky. So, we’ve put together this newbie-friendly Q&A to help you understand xStocks fast!
Q1: Which US stock tokens does xStocks support?
The official website lists 61 US stocks so far, including familiar names like:
– Tech giants: NVIDIA, Apple, Amazon, Tesla, Meta
– Finance/payments: JPMorgan, Mastercard, Coinbase, Circle
– Consumer/index: McDonald’s, Berkshire Hathaway, S&P 500 Index
What’s the appeal? Compared to traditional brokers, xStocks tokens offer 24/7 trading (powered by Chainlink oracles), free transfers, zero trading fees on Kraken, and DeFi integrations!
Q2: Is there a 1:1 reserve of real stocks behind the tokens?
The platform claims yes, but custody relies on third parties. Known “guardians” include:
– Maerki Baumann (Swiss private bank, est. 1932, partnered with Bitcoin Suisse)
– InCore Bank (Swiss-regulated bank, FINMA-licensed, handles traditional+digital assets)
– Alpaca Securities (US broker, est. 2015, US stock trading channel)
Redemption rules are a bit complex: No management fees yet (may add up to 0.25%/year later), up to 0.5% fees on buys/redemptions (minimum $100 for redemptions), price based on Nasdaq but minus various charges.
A crypto KOL explained the process: Backed buys stocks via Interactive Brokers, stores them in a segregated Clearstream (Deutsche Börse) account, then mints 1:1 tokens on Solana (e.g., 1000 Tesla shares = 1000 TSLAx tokens).
Q3: Which crypto platforms support xStocks?
The lineup is impressive, covering exchanges, on-chain ecosystems, and tools:
– CEX: Kraken, Bybit (Byreal), Crypto.com
– Solana ecosystem: Raydium (DEX), Kamino (lending), Jupiter (aggregator)
– Wallets/tools: Solflare, FORDEFI (wallets), Chainlink (oracle), AlchemyPay (payments)
– Others: Backpack, GMGN (already opened trading windows)
Q4: Who’s powering the service behind the scenes?
- Issuer: Backed (core role, handles token minting on-chain)
- Custodians: The 2 Swiss institutions + 1 US broker mentioned earlier
- Security/authorizations: Dedicated security agents and authorized participants
Note: No market makers yet – liquidity relies on the ecosystem, likely because the space is still early-stage.
Q5: Who can’t use xStocks?
High-risk regions like the US, Iran, North Korea, and Syria are banned! Backed explicitly states: “We never sell tokens to US persons or market in the US.” Why? To avoid repeating Terra’s Mirror Protocol fiasco, which faced “unregistered securities” charges from US regulators.
Q6: Do token holders get dividends or voting rights?
Short answer: No! Official terms clarify tokens are just “price trackers” – you won’t be a real shareholder.
Also, buying tokens on partner platforms doesn’t require KYC, but using Backed’s official site (e.g., for redemptions) means passing KYC first.
Q7: How can crypto natives arbitrage?
Beyond buying low/selling high on stock price swings, you can earn yields by providing liquidity to LP pools. However, since pools are shared across platforms, cross-platform arbitrage opportunities are limited.
Insiders note: Tokenized stocks and real stocks may have price gaps due to liquidity or time zone differences (US market hours vs. crypto’s 24/7 trading). Look into “time zone arbitrage” or “event-driven arbitrage” (e.g., pre-earnings positioning) for ideas.
Q8: What if liquidity runs low? Will market makers be added?
No official word yet, but experts are divided:
– siong (Jupiter co-founder): Traditional AMMs aren’t fit for stock tokens – new designs are needed to fix liquidity and market cap mismatches.
– Yu Xian (SlowMist founder): Tokenized stocks bring crypto-style玩法 to equities, but also new risks (think Terra/FTX’s past stock token experiments – regulatory issues, price manipulation, volatility are all red flags).
Q9: Is the team trustworthy?
Juicy gossip: A KOL revealed Backed’s team is the same group behind the failed DAOStack project. That background… let’s just say, invest cautiously!
In short, xStocks makes “trading US stocks on-chain” a reality, but risks and details need scrutiny. Do you think this tokenized stock wave will last? Share your thoughts below!
Read More《10问xStocks:交易美股代币时，我们到底在交易什么?》
This content is AI-generated and does not constitute investment advice. Please exercise your own rational judgment.
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