What is Coca-Cola xStock (KOX)?

Quick Facts

• Issuer: Backed Finance (Backed Assets (JE) Limited), a Kraken company
• Backing: 1:1 backed by real Coca-Cola (NYSE: KO) shares
• Blockchains: Solana (SPL) and EVM-compatible networks (Arbitrum)
• Token type: Tokenized tracker certificate (RWA)
• Trading: Available 24/7 on supported DEXs and CEXs
• Eligibility: Available to investors outside the US and UK
• Dividends: Reinvested into token value rather than paid out directly
• Regulatory framework: Issued under a Liechtenstein FMA-regulated prospectus

Introduction

Coca-Cola xStock (KOX) is a tokenized tracker certificate that brings exposure to The Coca-Cola Company's stock onto public blockchain networks. It is part of the xStocks product suite developed by Backed Finance, designed to make traditional equities accessible to participants in the on-chain economy.

KOX does not represent direct ownership of Coca-Cola shares, but it closely tracks the stock's market price and is fully backed 1:1 by real shares held in regulated custody.

History & Background

Backed Finance launched the xStocks product line in May 2025, introducing tokenized versions of major US stocks and ETFs on Solana and EVM-compatible chains. The Coca-Cola xStock (KOX) was introduced as part of this suite alongside other blue-chip equity trackers.

In December 2025, Kraken announced its acquisition of Backed Finance, integrating the xStocks infrastructure into its broader exchange and custody ecosystem.

How Coca-Cola xStock Works

KOX is created through a mint-and-custody loop. When a user initiates a purchase, the issuer's broker acquires the corresponding Coca-Cola shares on a traditional exchange. Those shares are deposited with a regulated third-party custodian, and an equivalent number of KOX tokens are minted on-chain.

Redemption works in reverse — tokens are burned and the holder receives the cash value of the underlying shares. Backed publishes proof-of-reserves data, allowing users to verify that each token in circulation is matched by a real share in custody.

Tokenomics

KOX tokens are minted on demand as users purchase exposure and burned when users redeem. This elastic supply mechanism ensures the token supply always reflects the number of custodied shares. Dividends paid by Coca-Cola are reinvested into the token's value rather than distributed separately, keeping the economic model straightforward. Minting requires KYC verification, though secondary market trading is permissionless on supported venues.

Ecosystem & Use Cases

KOX operates on both Solana (using the SPL 2022 token standard) and Arbitrum, enabling broad DeFi composability. Token holders can:

• Trade KOX 24/7 on centralized and decentralized exchanges
• Hold KOX in self-custody wallets
• Use KOX as collateral in DeFi protocols
• Gain equity-like exposure without a traditional brokerage account

This positions KOX at the intersection of traditional finance and decentralized infrastructure.

Team, Governance & Community

KOX is issued by Backed Assets (JE) Limited, a Jersey-registered entity and part of the Kraken group. Backed Finance operates as a regulated financial infrastructure company, not a community-governed protocol. Governance over issuance and compliance sits with Backed and its regulatory counterparties rather than with token holders.

Advantages

• 24/7 on-chain trading with no dependency on traditional market hours
• 1:1 asset backing with regularly audited proof-of-reserves
• DeFi composability — usable as collateral and in on-chain applications
• Instant settlement compared to T+1 in traditional brokerages
• Self-custody — tokens can be held in any compatible wallet

Risks & Challenges

• No shareholder rights — holding KOX does not grant voting rights or direct share ownership
• Geographic restrictions — not available to users in the US or UK
• Custodial risk — the underlying shares depend on third-party custodians
• Regulatory uncertainty — the tokenized securities landscape continues to evolve globally
• KYC required for minting — new issuance is permissioned, limiting direct access for some users

Long-Term Vision

KOX represents the broader ambition of the xStocks platform: to make globally recognized equities programmable, composable, and accessible through blockchain rails. As the tokenized real-world asset sector matures, Backed Finance aims to expand its suite of on-chain securities, bridging the liquidity and familiarity of traditional stock markets with the openness and efficiency of decentralized finance.