Backed Finance (xStocks)

## What you are actually holding An xStock is **not a share**. It is a bearer debt instrument — a tracker certificate — issued by Backed Assets (JE) Limited, a Jersey SPV. You have a claim on the issuer, not on the company whose ticker is in the name. The Final Terms are explicit that holders are "exposed to the credit risk of the Issuer", that the instrument "does not have the status of a bank deposit and is not within the scope of any deposit protection scheme", and that holders get no voting or information rights in the underlying company. ## Who regulates this Less than the branding suggests. The Final Terms state plainly: **"The Issuer is not and will not be regulated by any regulator as a result of issuing the securities."** The products are not a collective investment scheme under the Swiss CISA, are therefore *not* subject to FINMA authorisation, and holders "do not benefit from the specific investor protection provided under the CISA". What does exist is a base prospectus approved under the EU Prospectus Regulation, which is a disclosure regime, not a solvency or conduct one. In Switzerland the securities qualify as structured products under Art. 70 FinSA and may be offered exclusively to professional investors. ## What the issuer can do to your tokens This is the part that is visible on-chain rather than in the paperwork, and it is the sharpest difference from Ondo. Every one of the 737 xStocks mints we read carries a Token-2022 **`permanentDelegate`** extension. A permanent delegate can move tokens out of any holder's wallet without that holder's consent. Ondo sets none on any of its 442 mints. Both issuers additionally retain live **mint and freeze authority**, and both set `pausableConfig` and a `transferHook`. In the xStocks case a single pair of authority addresses is shared across all 737 tokens, so one key compromise is not contained to one ticker. ## Corporate actions move the token, silently xStocks mints use the Token-2022 **Scaled UI Amount** extension: the balance you hold is multiplied by a number stored on the mint, and that number moves with dividends and splits. 305 of 737 xStocks mints already carry a multiplier other than 1. Anything that reads the raw on-chain amount — including some explorers — will understate what a holder owns. ## Redemption is not for you Redemption runs to qualified investors who clear KYC, with a minimum size, and the issuer may reject a redemption outright on adverse KYC/AML findings. For an ordinary secondary-market holder the practical exit is the DEX quote, which is why the depth number on this site matters more than the redemption clause does. *Sources: Backed Assets (JE) Limited Final Terms (Product Nr. 134, STRCx, ISIN CH1500008482, dated 30 January 2026) and the accompanying Base Prospectus at backedassets.fi; xStocks legal documentation; on-chain mint state read directly from Solana mainnet on 2026-09-09.*