xStock tokens, to be offered by Kraken, will reportedly be backed by shares of the underlying securities, with new shares acquired as needed by Backed Finance, and redeemable for their cash value

Quotes that support claims

The tokens are to be redeemable for the cash value of the underlying securities. In theory, that should keep the tokens’ prices in line with the prices of the corresponding stocks and ETFs.

xStocks tokens will be backed by shares of the underlying security, with Kraken’s partner company Backed Finance acquiring new shares as needed, the companies say.