Analysis: The xStocks platform is primarily supported by institutions such as Backed, Interactive Brokers, and Clearstream to enable stock purchases, transfers, and deposits.

Crypto KOL @ _FORAB posted on the X platform an analysis of the underlying principles behind platforms like Kraken, Bybit, and Jup integrating xStocks to enable the circulation of crypto and stocks. He stated that (US stock tokenization is mainly) controlled by Backed Assets, a parent company registered in Switzerland, which controls operations in Jersey. They buy stocks in the US stock market through the IBKR Prime channel under Interactive Brokers, and then transfer and place them in segregated accounts under Clearstream. Clearstream is a depository institution under the German Stock Exchange that helps them hold these stocks. Once the above buying, transferring, and depositing operations are completed, it triggers the contract deployed on the Solana chain, which corresponds to the issuance of more stock tokens. That is, for every 1000 shares of Tesla stock purchased and deposited, 1000 TSLAx tokens will be minted on the chain at a 1:1 ratio.
The control address of the token contract belongs to Backed, the issuer. Then third-party exchanges, such as Kraken, Bybit, Jupiter, etc., can directly list the spot and contracts of these tokens.
If investors or market makers buy TSLAx tokens greater than or equal to 1, they can apply to Backed to redeem them for actual Tesla shares under the brokerage. This completes the entire process of crypto-stock collateralization, minting, issuance, and redemption. [Odaily星球日报]