What is Western Digital tokenized stock (xStock) (WDCx)?

Quick Facts

• Issuer: Backed Assets (JE) Limited, a Jersey-registered SPV
• Parent company: Backed Finance AG, a Swiss fintech founded in 2021
• Underlying asset: Western Digital Corp (WDC) common stock
• Collateralization: 1:1 by the underlying share held in segregated custody
• Token standards: SPL Token-2022 on Solana; ERC-20 on EVM chains
• Trading: Available 24/7 on DeFi platforms and select centralized exchanges
• Not available to: US persons, per the issuance and distribution structure

Introduction

WDCx is a tokenized tracker certificate that mirrors the price of Western Digital Corp (Nasdaq: WDC) on the blockchain. It is part of the xStocks product suite developed by Backed Finance, which aims to bring real-world equities and ETFs into the on-chain ecosystem in a regulatory-compliant way.

Holders of WDCx gain economic exposure to Western Digital's stock price without needing a traditional brokerage account, and can trade the token 24/7 across multiple blockchains.

History & Background

Backed Finance AG was founded in 2021 as a Swiss-based fintech company focused on tokenizing real-world financial assets. In 2025, the company formally launched the xStocks platform — a suite of on-chain tracker certificates covering a wide range of publicly traded stocks and ETFs.

WDCx was introduced as part of this catalog, offering global investors a blockchain-native way to access Western Digital's equity performance. Backed has since grown to support over 100 stocks and ETFs, distributed through platforms such as Kraken, Bybit, and OKX.

How Western Digital tokenized stock (xStock) Works

When an eligible investor purchases WDCx, the issuance process involves converting stablecoins into USD, purchasing the actual Western Digital share through a licensed U.S. broker, and holding that share in segregated custody accounts. Backed Assets (JE) Limited then mints an equivalent number of WDCx tokens on the requested blockchain.

Each token is legally structured as a bearer debt instrument — a tracker certificate — rather than a direct equity stake. This means token holders receive economic exposure to WDC's price movements, but do not hold registered shares and have no shareholder voting rights. Dividends from the underlying stock are reinvested into the token's value. Proof of reserves is publicly available.

Tokenomics

WDCx tokens are minted on demand when new collateral is deposited, and burned upon redemption. Only whitelisted (KYC-verified) clients can directly mint or redeem tokens through Backed; however, secondary trading is permissionless, meaning anyone outside the US can buy or sell WDCx on supported DEXs and CEXs without interacting with the issuer directly.

The token's value is pegged to the WDC share price, so its economic design focuses on price-tracking fidelity rather than speculative tokenomics.

Ecosystem & Use Cases

WDCx is designed to integrate natively with DeFi protocols. It can be used as collateral, traded on decentralized exchanges like Raydium (Solana), and plugged into broader DeFi strategies. Centralized exchange partners such as Kraken also list xStocks, broadening distribution.

Key use cases include gaining stock price exposure without a brokerage, accessing US equity markets from regions with limited traditional finance infrastructure, and using tokenized equities within DeFi lending or yield strategies.

Team, Governance & Community

WDCx is governed by the legal and operational framework of Backed Assets (JE) Limited and its parent, Backed Finance AG. The issuer retains control over minting, burning, and compliance functions. There is no decentralized governance structure — the product operates as a regulated financial instrument rather than a community-governed protocol.

The xStocks community and updates are shared via the official Twitter account @xStocksFi and the Telegram channel @xstocksfi.

Advantages

• 1:1 collateralization by the real underlying share, held in segregated custody
• Permissionless secondary trading — no issuer interaction needed once issued
• Multi-chain availability across Ethereum, BNB Smart Chain, Solana, Arbitrum, and more
• 24/7 trading unlike traditional stock market hours
• Regulated structure with a prospectus approved by the Liechtenstein FMA, passportable across the EEA
• DeFi-native design enabling use as collateral or in yield strategies

Risks & Challenges

• No shareholder rights — holders do not own registered shares and cannot vote
• Custodian and issuer risk — insolvency or legal action against the custodian or SPV could affect the backing structure
• US persons excluded — the token cannot be offered to US residents due to its issuance structure
• Issuer control — Backed retains power to mint, burn, or freeze tokens
• Regulatory uncertainty — evolving securities laws across jurisdictions could impact the product's legal standing
• Market hours divergence — token price may diverge from the official WDC share price during off-market hours

Long-Term Vision

WDCx and the broader xStocks ecosystem represent a growing bridge between traditional capital markets and decentralized finance. Backed Finance's vision is to make global equity markets accessible on-chain — permissionlessly, around the clock, and across borders — while maintaining a rigorous compliance framework. As tokenized real-world assets continue to mature, WDCx sits at the forefront of this convergence between regulated securities and open blockchain infrastructure.