Tokenized stocks, explained

How do tokenized stocks work?

1. 1

   The underlying share is held in custody

   xStocks are issued by Backed Assets (JE) Limited, a Jersey company. According to the issuer, each xStock is collateralized 1:1 by the underlying share or ETF, which is held with custodians and brokers in dedicated sub-accounts. That is the issuer's own description, so read its terms before you rely on it.

2. 2

   The token tracks the price on Solana

   Each xStock is a token on Solana designed to track the price of its share or ETF. The issuer's legal overview calls it "a bearer debt instrument classified as a tracker certificate" and says xStocks are "structured financial instruments, not direct equity ownership."

3. 3

   Dividends and splits change a multiplier

   The token uses a Solana extension called Scaled UI Amount. The raw number in your wallet stays the same, and a multiplier changes the amount that apps display. According to the issuer, a dividend is reinvested into more of the same stock, net of withholding taxes, which raises the multiplier. A split or reverse split scales it in proportion.

4. 4

   Holders sell, or redeem with the issuer

   Direct redemption with the issuer has a minimum transaction size of $5,000 and works through whitelisted wallets after KYC and AML checks. The issuer's FAQ says most users access liquidity through secondary markets instead, where it imposes no minimum.

What can you do with xStocks in Neovestor?

At launch, the only tokenized stocks Neovestor shows are six xStocks, issued by Backed: NVDAx, TSLAx, AAPLx, MSFTx, SPYx and GLDx. In Neovestor you can buy, sell and convert them from your own wallet.

NVDAxxStocksTSLAxxStocksAAPLxxStocksMSFTxxStocksSPYxxStocksGLDxxStocks

Every asset screen names the issuer, links its terms and shows the restrictions that apply to you. Neovestor is an interface: it doesn't issue these tokens, and they sit in your own wallet. Each trade starts with a quote that expires in about 30 seconds, and nothing moves until you confirm with Face ID or your passcode.

Neovestor is also an interface to third-party stablecoin yield products, and its self-custody design applies to every asset above. About Neovestor explains what it is and what it isn't.

What do you own when you hold a tokenized stock?

You own a tokenized stock, a token that gives economic exposure to the price of a share or ETF. You don't own the share. The issuer says xStocks "do not convey shareholder rights, such as voting rights", and, according to the issuer, holders don't receive dividends in cash.

In a January 2026 staff statement, three divisions of the US Securities and Exchange Commission described third-party tokenized securities in general terms. A token may or may not represent an ownership interest in the issuer, may or may not give any rights as a holder of the underlying security, and holders may be exposed to risks with respect to the third party, such as bankruptcy. The statement is a view from staff, not a rule, and the issuer says xStocks aren't offered to US persons.

What can the issuer do with the token?

The issuer can pause the token, and it can move or burn tokens in a holder's account. Both powers come from how xStocks are built. The Solana Foundation's case study lists the Token-2022 extensions Permanent Delegate, an authority with ongoing rights to transfer or burn tokens, and Pausable, which lets the issuer pause all interactions with the token. Solana's documentation adds that token account owners can't revoke a permanent delegate.

The case study says a permanent delegate is often a regulatory requirement so that assets can be seized under a lawful court order, and that pausing is used for emergencies, regulatory requirements and security incidents.

These are facts about the design, not predictions. In Neovestor, every asset screen names the issuer and links its terms, including for xStocks.

Why can the price differ from the share price outside US hours?

The share trades only while its market is open, but the token can trade on-chain at other times. The NYSE core session runs from 9:30 a.m. to 4:00 p.m. Eastern Time. The issuer says xStocks can be traded 24/7 on secondary markets, depending on the platform, while issuance and redemption with the issuer follow US market hours.

When the share market is closed, the token's price can drift from the last share price. The SEC's investor education on after-hours trading, written about US-listed shares, says less trading activity can mean wider spreads between bid and ask prices, and that after-hours prices may not reflect regular-hours prices. The same reasoning helps explain why on-chain prices can look different while the US market is shut.

In Neovestor, a buy placed outside US market hours shows a wider spreads warning, applies a slippage cap and expires the quote. Buying is also paused for a short window around an issuer multiplier change.

Who can use xStocks?

Not everyone. The issuer states that xStocks are not marketed, offered or solicited in the United States or to US persons. Venues set their own lists too: Kraken's xStocks FAQ, for example, excludes the United States, the United Kingdom, Canada, Australia and the jurisdictions of sanctioned countries. That is one venue's list, not a universal one.

In Neovestor, availability depends on your country, and Neovestor is not available to under-18s. Each asset screen shows the restrictions that apply to you. When an asset is restricted for you, the app shows the reason and switches off Buy, while Sell stays available. The issuer's terms and local rules also apply, so check them first.

What are the main risks of tokenized stocks?