What is Coinbase tokenized stock (xStock) (COINX)?

Deep Dive

1. Purpose & Value Proposition

COINX bridges traditional finance and crypto by tokenizing Coinbase stock (NASDAQ: COIN), allowing investors to trade equity exposure on blockchain networks. Unlike traditional brokerage accounts, it enables fractional ownership, global liquidity, and integration with decentralized apps like lending protocols (Gate.io).

2. Technology & Architecture

Built by Backed Finance, COINX uses a “tracker certificate” model where each token is 1:1 collateralized by actual Coinbase shares held in custody. The dual-chain design (Solana and Ethereum) lets users transfer tokens across ecosystems, leveraging Solana’s low fees for trading and Ethereum’s DeFi infrastructure for yield opportunities like collateralized borrowing (Kamino Finance).

3. Regulatory Framework

COINX restricts U.S. investors to comply with SEC regulations but provides a compliant pathway for international users. Tokens are freely transferable on-chain, yet ownership is verified through KYC checks during minting/redemption to prevent unauthorized access (Backed Assets).

Conclusion

COINX reimagines stock ownership by merging equity exposure with blockchain’s efficiency, enabling fractional trading, cross-chain utility, and integration into DeFi ecosystems. As regulatory clarity evolves, will tokenized equities like COINX become a standard bridge between traditional markets and crypto?