INX and Backed launch on-chain tokenized NVIDIA stock trading

INX, a regulated marketplace for trading security tokens and tokenized real-world assets, and Backed, a leader in real-world asset tokenization, have announced the listing of tokenized NVIDIA stock on the INX platform for eligible non-US users.

This partnership marks a significant advancement in the integration of traditional financial assets with the digital asset space.

Tokenization of NVIDIA stock

The launch of bNVDA, a tokenized security backed one-to-one by NVIDIA Corp (NVDA) stock, represents a pivotal step in the tokenization of real-world assets.

Issued on the Ethereum network, bNVDA utilizes the blockchain ledger to convey ownership, offering non-US eligible investors a new way to trade NVIDIA stock.

This initiative enables 24/7 trading, bypassing traditional stock market hours, and allows funding accounts with cryptocurrency.

Backed’s tokenized public securities, known as bTokens, are permissionless ERC-20 tokens that can be transferred freely between wallets. This flexibility and accessibility are set to revolutionize how investors interact with traditional financial assets.

Advancing the accessibility of tokenized assets

Shy Datika, CEO of INX, expressed enthusiasm about the partnership:

We are thrilled to have Backed as one of our tokenization and issuance partners, and we’re excited to initiate the listing of their securities in our marketplace. This partnership represents another milestone in our journey to enable the trading of real-world asset tokens. We are committed to advancing the accessibility and efficiency of the tokenized asset market, ushering in a new era of global finance.

Adam Levi, Co-Founder of Backed, echoed these sentiments:

Crypto traders have been seeking a seamless bridge to the traditional market – and tokenized stocks provide exactly that. bNVDA is just the beginning; we envision a future where investors can build diversified portfolios of tokenized real-world assets directly on the blockchain. No need to off-ramp, and users can self-custody their entire portfolio.

Implications for the financial market

The introduction of bNVDA on the INX platform allows for fractional share ownership, providing a new level of investment flexibility.

By integrating crypto, fiat, and security tokens into a unified marketplace, INX and Backed are pushing the boundaries of financial innovation.

The tokenized assets, including bNVDA, are issued under an EU prospectus, ensuring full transparency for eligible investors.

The underlying NVIDIA stock is held with a licensed custodian under an account control agreement, guaranteeing the primary claim to the collateral value for holders of bNVDA.

The partnership between INX and Backed is a significant development in the evolving landscape of tokenized securities. With Republic reaffirming its commitment to a strong partnership with INX and Backed completing their Series A funding round, the ecosystem for tokenized securities is gaining momentum.

This collaboration demonstrates the potential for true interoperability and composability in the financial market, paving the way for future advancements.

Future prospects

The successful listing of bNVDA is likely just the beginning. Both INX and Backed have plans to tokenize a broader range of assets, including ETFs, bonds, and commodities.

This expansion will further democratize access to diverse investment opportunities, allowing investors to build comprehensive, blockchain-based portfolios.

The ability to trade tokenized stocks around the clock, coupled with the security and transparency of blockchain technology, positions this partnership as a landmark development in finance.

As the market for tokenized securities grows, the collaboration between INX and Backed will likely serve as a model for future innovations, bridging the gap between traditional finance and the digital asset space.

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