Definition
xStocks are a branded family of tokenized representations of publicly traded stocks and ETFs, backed by corresponding underlying assets and distributed through partner platforms.
How xStocks are structured
Backed Assets issues the products and states that each xStock is collateralized by the corresponding underlying security. Partner exchanges, wallets and applications make the tokens available to eligible users. Features such as trading, withdrawal, transfer and redemption depend on the partner and jurisdiction.
Corporate actions are reflected through the product's rebasing mechanism. The issuer says dividends are reinvested into additional units after applicable taxes rather than paid as cash to the holder.
What an xStock holder does not receive
xStocks provide price exposure through tokenized securities. They are not the underlying equity and do not confer shareholder or voting rights. Availability is restricted by geography, and the legal documents govern the product rather than the ticker suffix alone.
What it does not mean
An xStock is not a stock perpetual future and it is not the same legal instrument as a share held directly. The token's backing and rights come from its issuer documents.
Where this term fits
Questions about xstocks
- Are xStocks backed by underlying securities?
- The issuer states that each xStock is collateralized by the corresponding underlying stock or ETF held in segregated custody accounts.
- Do xStocks provide shareholder voting rights?
- No. xStocks are not the underlying equity and do not confer shareholder or voting rights.
- Can xStocks trade outside stock-market hours?
- Secondary trading can run continuously where a partner supports it. Issuance, redemption and liquidity conditions follow separate rules.
See these concepts in context
Review the Fensory MCP connection, tools and account controls.