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.
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Apple, Tesla and Nvidia Shares to Trade as Digital Tokens on Crypto Exchange Kraken
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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
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