What are xStocks and how Backed's tokenized stocks work

Updated: 2026-10-27 · 6 min read · TradeGid

xStocks are tokens of US stocks and ETFs issued by Backed Assets (JE) Limited. Each token is backed 1:1 by a real share, trades for USDT on Bybit, Gate, Kraken and OKX, and lives on Solana, Ethereum, BNB Chain and other chains. You can spot them by the x in the ticker: TSLAx, NVDAx, AAPLx.

What is an xStocks token

In short, xStocks are the most widely used standard for tokenized stocks. The issuer buys a share, say Tesla, holds it with a regulated custodian and mints one TSLAx token. The token's price follows the stock, and you can trade it for USDT on a crypto exchange or hold it in a wallet on-chain.

The product comes from Backed Finance, a Swiss company founded in 2021. The tokens are legally issued by Backed Assets (JE) Limited in Jersey. In December 2025 Payward, Kraken's parent company, announced it was acquiring Backed, so the "xStocks by Payward" you see in searches is literally accurate: xStocks are now part of the Kraken ecosystem.

How xStocks work: 1:1 backing

The mechanics are simple. Each token should be backed by one share (or one ETF unit) held by a regulated custodian. When demand grows, the issuer buys more shares and mints new tokens; when tokens are redeemed, shares are sold.

1. Backed buys the share on a US exchange through a broker.
2. The share is held by a regulated custodian in the issuer's name.
3. The issuer mints a token on-chain, one for one.
4. The token goes to exchanges and DeFi, where it trades for USDT and other coins.
5. On redemption the token is burned and the share is sold.

Your token is a claim on the issuer, backed by a share in reserve; you have no rights to the share itself.

That is why Kraken's documents state plainly that xStocks holders have no voting rights and no legal claim to the underlying shares. For a trader it changes little. For someone investing for years it is a material caveat.

xStocks by the numbers

As of October 2026. Volume includes CEX and DEX trading plus token issuance and redemption.

xStocks on Solana and other chains

Solana was the first chain for xStocks and still hosts most of the DeFi activity. Ethereum, BNB Chain and TON followed, and on OKX the tokens were also deployed on X Layer. Kraken now cites 10+ supported blockchains.

A practical detail few people know: on Solana, dividends are handled through the Scaled UI extension. The raw on-chain balance stays the same and only the displayed balance is recalculated. An explorer without Scaled UI support will show a smaller number than you actually hold. On EVM chains the contract adjusts balances directly.

Where xStocks trade

xStocks on Kraken and other centralized exchanges

As of October 2026, from official exchange pages and press releases.

The step-by-step with buttons for each exchange is in how to buy stocks with USDT.

xStocks in DeFi

You can withdraw xStocks to your own wallet and use them on-chain: swap on DEXs, add to liquidity pools, post as collateral where supported. Bridges move tokens between chains, and OKX DEX runs the xChange integration on three chains. All of this adds smart contract risk, so I would not start with DeFi.

xStocks dividends

xStocks do not pay cash dividends. The issuer receives the dividend, withholds US tax and uses the rest to buy more of the same share. You see it as a higher token balance, not as USDT in your account.

• Tax. The net dividend after 30% US withholding is reinvested.
• Formula. The multiplier grows by the net dividend divided by the previous day's closing price.
• Timing. The multiplier updates around 8 pm New York time on the day before the ex-date.
• Splits. In a 4-for-1 split you get four times the tokens at a quarter of the price; total value is unchanged.

xStocks dividends work as automatic reinvestment net of 30% tax, so your token count grows over time but you never receive cash.

Who can't buy xStocks

One rule applies everywhere: xStocks are not sold in the US or to US persons. Beyond that each venue has its own list, and they differ.

• Kraken: no access in the US, Canada, the UK or Australia; EEA clients must pass a questionnaire, buy with fiat only and trade 24/5.
• Bybit: not for Australia, Japan, any EEA member state or jurisdictions Bybit does not serve.
• OKX: launched for Southeast Asia, Northeast Asia, the CIS, MENA and Türkiye; not for the US or Europe.

Country lists differ by exchange and change over time, so the eligibility screen in your verified account is the only final answer.

xStocks vs bStocks vs rTokens

The three lines share one idea but differ in issuer, chain and dividend handling. Switch the tabs to compare.

My take is simple. If you trade on Bybit, Gate or OKX, you are using xStocks; there are no other stock tokens there. If you want dividends as cash, look at Bitget rTokens. bStocks suit people who already buy real shares on Binance and want to move them into token form.

xStocks risks

xStocks work well for trading and small positions, but a large long-term portfolio is safer at a broker.

If you plan to trade xStocks with leverage via perpetuals, factor in funding and liquidation price: the rules are the same as for crypto.