Backed issuance xStocks in Switzerland, avoiding whitelist barriers

Backed Finance has chosen Switzerland as the sign up location for the issuance of xStocks – tokenized shares of Tesla, Nvidia, and many large companies – thanks to the legal framework that allows free trading without being restricted by a whitelist.

According to co-founder Adam Levi, whitelisting makes the product less attractive and harder to popularize. He compares: "Just think if stablecoins were permissioned, no one would want to use them."

Currently, xStocks has about 30,300 investors holding, of which the token linked to Tesla accounts for the largest share, with 43,000 tokens worth approximately 18 million USD.

Unlike traditional stocks, xStocks operates as an "IOU" ( debt commitment ) – holders do not directly own shares but have the right to enjoy the economic value from the stocks and can exchange it for actual shares for a fee.

The Swiss legal framework in 2020 was assessed to be friendly to innovation, laying the foundation for xStocks to develop. Levi expects global demand to drive the tokenization of stocks, similar to how stablecoins have become popular due to their role in preserving value during inflation.

👉 He stated: "Bitcoin may be volatile, but if you need a safe asset with stable growth, the S&P 500 is the ideal choice."