xStocks are tokenized representations of publicly traded equities and ETFs. Each xStock token is fully collateralized 1:1 by the corresponding underlying asset held with a regulated custodian.

xStocks are issued through a compliant legal structure and are designed to function as blockchain-native instruments that integrate with wallets, exchanges, and DeFi protocols. They are currently available natively on Ethereum, Solana, Mantle, TON, Ink, and other EVM-compatible networks.

xStocks provide onchain exposure to well-known stocks and ETFs in a format that supports transfers, composability, and interaction within decentralized finance, while preserving a direct economic link to the underlying equity.

Core Characteristics

1:1 Collateralized. Each xStock is backed by the underlying stock or ETF on a 1:1 basis.

Permissionless. xStocks can be held, transferred, integrated and traded across platforms and wallets without platform dependency or technical transfer restrictions.

Available 24/7. xStocks trade around the clock on supported exchanges and DeFi venues. Issuance and redemption through the issuer operate 24/5, aligned with U.S. equity market hours.

Multi-Chain. Issued natively on Ethereum, Solana, Mantle, TON, Ink, and other EVM-compatible networks.

Self-Custodial. Holders can withdraw to their own wallet and retain full control of the asset.

DeFi Composable. Usable as collateral in lending markets, deployable in liquidity pools, and integrable into structured products.

Fractional. xStocks can be held and transferred in fractional amounts.

Protected. xStocks are designed with robust, best in class investor protections. The product structure includes a bankruptcy-remote issuing SPV, full 1:1 collateralization on an asset-by-asset basis with no commingling between products, segregated custody accounts governed by a three-party Account Control Agreement, an independent Security Agent with visibility over collateral, publicly verifiable proof of reserves, and audited smart contracts.

True to price. Corporate actions such as dividends, stock splits, and reverse splits are reflected through an onchain rebasing mechanism. Token balances always reflect a 1:1 exposure of the underlying equity. No action is required from holders. Read more about the rebasing mechanism in Dividends and Stock Splits.

The xStocks Alliance

The xStocks Alliance was formed to unite top exchanges, chains, DeFi protocols and more in building an open, liquid market for xStocks onchain. This collaborative ecosystem approach helps broaden availability and supports increased utility for the token holders.

The objective of the Alliance is to:

• Promote interoperability across platforms
• Support consistent integration standards
• Enable liquidity across centralized and decentralized venues
• Establish xStocks as a common format for tokenized equities

For the full list of xStocks Alliance members, partners and products, please visit xstocks.fi

How xStocks Work

xStocks combine traditional equity exposure with blockchain-based transfer and settlement.

Each token represents the economic value of a specific underlying stock or ETF and is fully collateralized 1:1. The system operates through two layers: a primary issuance layer where tokens are issued or redeemed, and a secondary permissionless layer where tokens move freely across exchanges, wallets, and DeFi protocols.

The sections below explain how these components work together.

Onchain Representation

xStocks exist as tokens on public blockchains, currently including Ethereum, Solana, Mantle, TON, Ink, and other EVM-compatible networks.

They are:

• Fully collateralized on a 1:1 basis
• Freely transferable onchain
• Fractional by design
• Compatible with wallets, exchanges, and DeFi protocols

Each token corresponds to a specific underlying equity or ETF held in custody.

Primary and Secondary Markets

Primary Market (Issuance & Redemption)

The primary market is where xStocks are issued or redeemed through direct interaction with the issuer.

Access to the primary market requires onboarding (KYC/AML). Once onboarded, a direct client can initiate issuance or redemption through the issuer platform. Issuance and redemption can be done with either stablecoins or with the underlying equity through our In-Kind flow (xPort).

Primary issuance and redemption operate 24/5, aligned with the underlying equity market.

Secondary Market (Trading)

Once issued, xStocks can trade freely on supported exchanges and DeFi platforms.

Secondary trading:

• Can occur 24/7, depending on the platform
• Does not require direct interaction with the issuer
• Follows standard exchange or DeFi trading mechanics

Secondary markets provide liquidity and price discovery independent of the primary issuance process.

Corporate actions

Corporate actions such as dividends, stock splits, and reverse splits are handled through an onchain rebasing mechanism.

Rebasing automatically adjusts token balances to reflect changes in the underlying equity.

• Dividends are reinvested into additional underlying shares.
• Stock splits increase balances proportionally.
• Reverse splits decrease balances proportionally.
• No action is required from holders.

Rebasing ensures that token balances always reflect a 1:1 exposure of the underlying equity.