Backed Finance is an infrastructure platform for tokenizing traditional financial assets, bringing stocks, ETFs, and other securities onto public blockchains. The project began with its bTokens product line and launched xStocks in 2025 — tokenized representations of U.S. stocks and ETFs backed 1:1 by the corresponding underlying assets. These instruments make exposure to traditional markets accessible through crypto infrastructure, including wallets, exchanges, and compatible DeFi applications. In 2025–2026, xStocks became Backed’s primary product line, while the original bTokens offering began gradually converging with xStocks following an agreement for Payward, the group associated with Kraken, to acquire Backed.
Contents
- What Is Backed Finance and How Does Asset Tokenization Work?
- xStocks and Tokenized ETFs: Structure and Asset Backing
- Solana, Ethereum, and Other Networks: Backed’s Multichain Infrastructure
- xStocks Features, DeFi Integrations, and Tokenization Risks
- Backed Finance Development and the Future of Tokenized Markets
1. What Is Backed Finance and How Does Asset Tokenization Work?
Backed develops Real World Asset infrastructure designed to bring traditional securities onto blockchains. Instead of creating synthetic assets whose prices are determined only through external oracles, the company issues structured products backed by corresponding securities. This model covers stocks, ETFs, and other publicly traded financial instruments.
The original product line was called bTokens. These tokens represent units of structured products in the form of tracker certificates whose value follows a specified underlying asset. The collateral is held through regulated custody infrastructure, while the legal structure separates the blockchain token from direct registration of the underlying stock or ETF in the token holder’s name.
This is an important distinction from a traditional brokerage account. A buyer of a tokenized instrument does not become a registered shareholder of a company simply by holding the corresponding token. Instead, the holder receives economic exposure through a security issued by Backed and collateralized by the underlying asset. User rights are therefore determined by the legal documentation of each product, not only by its ERC-20 or SPL token standard.
By 2026, xStocks had become the primary model for broader market distribution. They expand on the original bTokens concept but are designed for wider integration with cryptocurrency exchanges, wallets, and DeFi. Backed also provides Tokenization as a Service for financial institutions, enabling them to create tokenized trackers, investment strategies, and other financial products using its infrastructure.
2. xStocks and Tokenized ETFs: Structure and Asset Backing
xStocks were publicly launched in the summer of 2025 with a selection of tokenized U.S. stocks and ETFs. The initial range included digital representations of shares in Apple, Nvidia, Tesla, and other publicly traded companies, as well as ETFs tracking markets such as the S&P 500 and Nasdaq-100. Their tickers generally add the letter “x” to the traditional symbol, resulting in names such as AAPLx, NVDAx, SPYx, and QQQx.
Each xStock is designed to track the economic value of a specific underlying instrument and is backed 1:1 by the corresponding asset. When tokens are issued, equivalent securities are acquired and placed with an independent custodian. As a result, the circulating supply of tokens is linked to reserves of traditional financial assets.
| Component | Purpose | Role in Backed Infrastructure |
|---|---|---|
| xStocks | Tokenized securities | Provide blockchain-based exposure to U.S. stocks and ETFs |
| SPYx | Tokenized ETF | Tracks the economic value of the SPDR S&P 500 ETF |
| QQQx | Tokenized ETF | Provides exposure to an ETF linked to the Nasdaq-100 Index |
| AAPLx / NVDAx / TSLAx | Tokenized stocks | Track the corresponding publicly traded shares |
| Custody | Collateral storage | Underlying securities are held with regulated custodians |
| Proof of Reserves | Collateral verification | Helps compare circulating tokens with underlying reserves |
xStocks are not identical to ordinary shares held in a brokerage account. Each token represents a structured security linked to the value of an underlying financial instrument. Holding the token does not directly register the user’s blockchain address as a shareholder of Apple, Tesla, or another underlying issuer.
Economic events related to the underlying asset also require separate processing. For example, dividends may be reflected through increases in the corresponding token balance according to the product’s rules, while corporate actions are handled through the issuer’s infrastructure. Users therefore need to consider the legal terms, redemption mechanism, and treatment of corporate actions associated with each xStock.
3. Solana, Ethereum, and Other Networks: Backed’s Multichain Infrastructure
One of Backed’s objectives has been to turn tokenized securities into multichain assets. The public launch of xStocks took place on June 30, 2025, on Solana alongside an integration with Kraken. The initial range included more than 55 tokenized stocks and ETFs, with Solana providing infrastructure for transfers, self-custody, and interaction with on-chain applications.
xStocks subsequently expanded into EVM and other blockchain environments. As of 2026, Backed’s legal documentation lists Ethereum, Solana, Arbitrum, Mantle, Ink, BNB Smart Chain, TRON, TON, and X Layer among the supported networks for xStocks. The availability of individual assets can differ between networks and trading platforms.
The multichain model distinguishes tokenized securities from conventional brokerage-based ownership. Where withdrawals are supported, users can hold assets in compatible self-custody wallets and interact with available on-chain infrastructure. Technically, these assets can be integrated into DEXs, lending protocols, and other DeFi applications when the relevant services support them.
Portability, however, does not eliminate dependence on traditional financial markets. The underlying stocks and ETFs continue to trade on regulated exchanges with defined market hours. When the primary market is closed, on-chain prices may be driven by limited liquidity and market expectations, potentially increasing deviations from the most recent official price of the underlying instrument.
4. xStocks Features, DeFi Integrations, and Tokenization Risks
One of the main practical differences of xStocks is their compatibility with cryptocurrency infrastructure. A traditional stock generally remains within the systems of brokers, custodians, and stock exchanges. A tokenized instrument can move between supported wallets and applications according to the rules of a public blockchain, expanding the range of possible use cases.
Direct minting and redemption through Backed are subject to KYC and AML procedures. Secondary circulation operates differently: the tokens are issued without built-in technical transfer restrictions, although access to individual exchanges, applications, and financial services depends on jurisdiction and the requirements imposed by each operator.
Key Features of Backed Finance and xStocks:
- tokenization of U.S. stocks and ETFs;
- 1:1 backing of xStocks with underlying securities;
- use of independent regulated custody infrastructure;
- self-custody support for compatible tokens;
- a multichain model for distributing digital securities;
- compatibility of selected assets with DeFi applications;
- Proof of Reserves for collateral verification;
- direct minting and redemption for eligible participants;
- tokenized ETFs alongside individual publicly traded stocks;
- tokenization infrastructure services for financial institutions.
The regulatory structure is an important part of the model. Backed products are structured as tracker certificates and regulated as securities rather than conventional utility tokens. The applicable base prospectus was approved by Liechtenstein’s financial regulator, the FMA, in May 2026, while the legal framework governing the products is connected to a Swiss legal structure.
Tokenization does not eliminate market or infrastructure risks. The value of an xStock depends on its underlying stock or ETF, while users are additionally exposed to issuer, custodian, blockchain, smart contract, and secondary-market liquidity risks. Geographic restrictions are also significant: xStocks are not offered in every country, and access conditions can vary between exchanges and jurisdictions.
5. Backed Finance Development and the Future of Tokenized Markets
The launch of xStocks marked an important stage in Backed’s development. While the original bTokens were primarily positioned as RWA infrastructure for on-chain markets, xStocks achieved broader distribution through centralized exchanges and consumer-facing applications. Kraken became one of the main launch channels, with other cryptocurrency platforms and DeFi services subsequently adding support.
In December 2025, Payward, the operator of Kraken, announced an agreement to acquire Backed Finance AG. The transaction was intended to bring the issuance, trading, and settlement infrastructure of xStocks closer together. By that point, xStocks had exceeded $10 billion in combined exchange and on-chain trading volume less than six months after their public launch, according to published figures.
Further product consolidation began in 2026. Backed announced a gradual transition from its historical bTokens range toward xStocks, with existing products receiving corresponding alternatives within the newer system and the original bTokens range expected to be progressively phased out by the end of 2026. The underlying collateralization principles and legal framework remain central to the model.
Backed Finance demonstrates one approach to connecting traditional capital markets with public blockchains. xStocks do not replace the underlying stocks and ETFs themselves; instead, they create a regulated tokenized layer linking traditional securities with cryptocurrency wallets, exchanges, and DeFi. The future development of this model will depend on tokenized securities regulation, the depth of on-chain liquidity, the reliability of custody infrastructure, and whether markets can use stocks and ETFs as functional digital assets rather than merely as an alternative way to obtain price exposure.
