Backed Finance

What is Backed Finance?

Backed Finance is a Swiss-regulated platform that brings traditional financial instruments on-chain through fully-backed, tokenized securities. The company's flagship products include bIB01 (iShares $ Treasury Bond 0-1yr ETF) and bIBTA (iShares Treasury Bond ETF), providing blockchain-native access to some of the world's most liquid fixed income products.

What distinguishes Backed is its regulatory approach: tokens are issued as Swiss structured products under FINMA oversight, backed 1:1 by the underlying securities held in segregated custody. This provides institutional-grade legal certainty that many crypto-native products lack, making Backed attractive to regulated entities and compliance-conscious investors.

Backed's product suite extends beyond Treasuries to include tokenized equity indices and other traditional financial instruments, positioning it as a bridge between traditional finance and DeFi ecosystems.

How Backed Finance Works

Swiss Structured Product Framework

Backed tokens are issued as Swiss structured products:

• Issued by Backed Assets GmbH (Swiss-regulated)
• Backed 1:1 by underlying securities
• Segregated custody at Swiss banks
• Regular third-party audits

Each Backed token represents ownership of underlying assets:

• bIB01: Tracks iShares $ Treasury Bond 0-1yr ETF
• bIBTA: Tracks iShares Treasury Bond ETF
• bCSPX: Tracks S&P 500 (for equity exposure)

Token prices track the NAV of underlying ETFs:

• Daily NAV calculations
• On-chain price feeds via Chainlink
• Minimal tracking error
• Corporate actions (dividends) reflected in NAV

Minting and Redemption

• Institutional minting/redemption at NAV
• Requires onboarding and verification
• Minimum amounts apply
• Settlement via traditional banking rails

• Trade on DEXs (Uniswap, Curve)
• No minimum amounts
• KYC may be required depending on jurisdiction
• Subject to market liquidity

Key Statistics

• Total Value Locked: $50M+ across products
• Primary Products: bIB01, bIBTA, bCSPX
• Current APY: 4.5-5.0% (Treasury products)
• Regulation: Swiss FINMA oversight
• Chains: Ethereum, Polygon, Gnosis Chain
• Custody: Swiss bank segregated accounts
• Tracking Error: <0.1% to underlying ETFs

Yield Opportunities

bIB01 - Short-Term Treasury Exposure (4.5-5.0% APY)

Access the most liquid short-term Treasury ETF on-chain:

• Tracks iShares $ Treasury Bond 0-1yr (SHV)
• Ultra-low duration (minimal interest rate risk)
• Highest credit quality (US government backing)
• Daily NAV appreciation

• Treasury diversification for DAOs
• Stable yield for institutional allocators
• Base layer for yield strategies

bIBTA - Broad Treasury Exposure (4-5% APY)

Diversified Treasury exposure across maturities:

• Tracks iShares Treasury Bond ETF
• Broader duration exposure
• Slightly higher yield potential
• More interest rate sensitivity

DeFi Integration Strategies

Use Backed tokens as collateral where supported:

• Maintain Treasury yield exposure
• Access liquidity without selling
• Stack with DeFi yields

Provide liquidity in Backed token pairs:

• Earn LP fees plus underlying yield
• Low impermanent loss for stable pairs
• Growing DEX integrations

Getting Started with Backed Finance

Step 1: Understand Access Options

• Trade on DEXs without direct Backed relationship
• Check jurisdiction restrictions
• No minimum amounts
• Subject to market liquidity

• Apply through Backed Finance
• Complete institutional onboarding
• Access NAV minting/redemption
• Higher minimums, better pricing

Step 2: Acquire Tokens

1. Connect wallet to supported DEX
2. Ensure sufficient USDC/ETH for swap
3. Trade for desired Backed token
4. Hold in any ERC-20 compatible wallet

1. Complete Backed institutional onboarding
2. Wire funds to custody account
3. Request minting at NAV
4. Receive tokens in verified wallet

Step 3: Monitor and Manage

• Track NAV through Backed dashboard
• Monitor underlying ETF performance
• Compare with alternatives using Fensory
• Redeem or sell when needed

Risk Considerations

Swiss regulatory framework may change. Cross-border restrictions vary by jurisdiction and may limit access.

While minimal, bIB01/bIBTA may not perfectly track underlying ETFs due to fees, timing, and operational factors.

Secondary market liquidity is limited compared to underlying ETFs. Large trades may face slippage.

Users depend on Backed's operational integrity, custody arrangements, and regulatory compliance.

Token contracts have been audited but carry inherent risks.

Not all jurisdictions permit access. US persons may face restrictions.

Backed vs Other Tokenized Securities

Frequently Asked Questions

bIB01 provides the same economic exposure as iShares SHV but as an ERC-20 token. Benefits include 24/7 transferability, DeFi composability, and blockchain settlement.

Dividends are reflected in the NAV rather than distributed separately. Token value appreciates as the underlying ETF accumulates and reinvests dividends.

Check Backed's current terms of service. Regulatory restrictions may apply to US persons for certain products.

Backed tokens are Swiss structured products with segregated custody. In bankruptcy, holders should have claims on underlying assets, though recovery processes would follow Swiss law.

DEX prices are determined by market supply and demand, potentially trading at premium or discount to NAV. Arbitrageurs typically keep prices close to NAV.

[Explore Backed on Fensory →](https://www.fensory.com)