Balancing compliance needs with open and accessible properties Decentralized finance Co-founder Adam Levi said it eventually brought the finances backwards in Switzerland.
The company has been registered with European countries because it is able to issue digital representations of stocks like Tesla and Nvidia called Xstocks, which can be freely transferred, as opposed to those constrained by so-called whitelists. Decryption.
“We were considering five jurisdictions, but the lawyer told me, ‘Yes, you can do that. That would be allowed on the whitelist,” recalled Levy. “And I said, “No, I’m not interested. I don’t want to make it because I don’t use it.”
In ciphers, whitelists are usually used to grant individual approval to participate in a particular event. NFT Or invest in cryptocurrency debut. In the context of Tokenization Stocks can tell who is permitted to hold a digital representation of the inventory.
Backd began issuing tokenized stocks under the Xstocks brand in June, and as the company competed, Similar products With retail brokerage Robinhood and the tokenization platform securitized, Levi argued that an unauthorized approach is best suited to adoption.
“Think of things that are allowed to be ridiculous,” he said. “No one uses it.”
As of Wednesday, XStocks currently has a total of 30,300 unique holders. Dune Dashboard. Tesla’s associated tokens are the most popular, with 43,000 tokens tied to $18 million in Tesla’s stock.
That distinction is important. Some forms of tokenized stock are “native” and it means They have the same qualifications While investors receive it when buying stocks through traditional means, XStocks is essentially a token wrapper held off-chain.
How similar is it? stablecoins Levi says it works for a dollar as an Iou. They are not issued by central banks or governments, so they are not themselves. Additionally, XStocks can be redeemed for a fee for the actual company’s shares.
“We were creating wrappers on top of stock,” he said. “You don’t have a Tesla – that’s important, but you basically have a right to Tesla’s economic value.”
XStocks is not available in the US and tokens are issued below Sweeping method It passed the Swiss Parliament in 2020. Legal frameworks are explicitly “innovation-friendly.” Factsheet It was published in 2023 by a Swiss government agency.
US regulators are raising eyebrows in connection with tokenization this year, with SEC Commissioner Hester Perth I’m saying In July, that tokenization is no match for existing securities laws. I also have companies like Openai Condemnation Tokens are tied to them as fraud.
Still, Levi believes XStocks can see true adoption abroad.
“People around the world have started using Stablecoins as a way to run from inflation. I think the same will (even happening) with Xstocks,” he said. “Bitcoin is very unstable, but if you want to have something that’s safe and growing, the S&P 500 is a very good product.”
