INX and Backed launch bNVDA, a tokenized NVIDIA stock, on the Ethereum network.
Investors can trade bNVDA 24/7 with blockchain security and self-custody options.
Future plans include expanding tokenized assets to ETFs, bonds, and commodities.
INX, a regulated marketplace for digital securities, in collaboration with Backed, a leader in real-world asset tokenization, has announced the listing of tokenized stock on the INX platform for eligible non-US users.
This innovation promises to enhance accessibility, liquidity, and security for global investors, especially those outside the US.
bNVDA, a tokenized security backed one-to-one by NVIDIA Corp (NVDA) stock, issued on the Ethereum network will be the first tokenized stock to be listed.
Revolutionizing access to traditional financial assets
The introduction of bNVDA on the INX platform marks a significant step in democratizing access to traditional financial markets.
Eligible non-US investors can now trade bNVDA with the ease and speed of cryptocurrencies, bypassing the limitations of traditional stock market hours.
This 24/7 trading capability allows investors to react to market changes in real time, providing a level of flexibility previously unattainable in the traditional financial system.
Self-custody is another revolutionary feature, allowing investors to hold their securities directly in personal wallets, thereby maintaining full control over their assets. This eliminates the need for intermediaries and enhances the security of the investment.
Furthermore, the use of blockchain technology ensures transparent and secure transactions, with ownership clearly recorded on the distributed ledger.
Bridging the gap between TradFi and DeFi
The partnership between INX and Backed is not just about convenience; it’s about creating a seamless bridge between traditional finance (TradFi) and decentralized finance (DeFi).
By tokenizing real-world assets like NVIDIA stock, INX and Backed are enabling crypto traders to build diversified portfolios that include traditional financial assets. This eliminates the need to off-ramp and allows users to manage their entire portfolio on the blockchain.
Backed’s tokenized public securities, or bTokens, are ERC-20 tokens that can be transferred freely between wallets, making them highly versatile.
These tokens, including bNVDA, are issued under an EU prospectus, ensuring full transparency for investors. The primary claim to the collateral value (in this case, NVIDIA stock) is held with a licensed custodian under an account control agreement, providing a high level of security and trust.
INX’s platform integrates crypto, fiat, and security tokens into a unified marketplace, offering a comprehensive trading experience.
The ability to fund accounts with cryptocurrency and invest in tokenized stocks streamlines the investment process, making it accessible and efficient for investors globally. This approach not only enhances liquidity but also opens up new possibilities for using tokenized stocks as collateral in DeFi applications.
Moving ahead INX and Backed plans to expand their tokenized offerings to include other assets such as ETFs, bonds, and commodities. This expansion will further enhance the versatility and appeal of the INX platform, making it a hub for tokenized real-world assets.
The recent Series A funding round completed by Backed and the reaffirmation of Republic’s commitment to partnering with INX highlight the growing momentum in the tokenized securities market.