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What is TSMC xStock (TSMx)?

Quick Facts

  • Issuer: Backed Finance (acquired by Kraken in 2025)
  • Underlying asset: Taiwan Semiconductor Manufacturing Company (TSMC) stock
  • Backing ratio: 1:1 by real TSMC shares in regulated custody
  • Trading hours: 24/7 on supported exchanges and DEXs
  • Available to: Non-US users in 110+ countries
  • Blockchains: Ethereum, Solana, Arbitrum, and other EVM-compatible networks
  • Standard: SPL Token-2022 (Solana) and ERC-20 (EVM chains)

Introduction

TSMC xStock (TSMx) is a tokenized representation of Taiwan Semiconductor Manufacturing Company (TSMC) stock, issued as part of the xStocks ecosystem by Backed Finance. It brings one of the world's most important semiconductor companies onto the blockchain, allowing global investors to gain price exposure to TSMC without using a traditional brokerage.

TSMx is part of a growing category known as real-world asset (RWA) tokens — digital assets that represent tangible, regulated financial instruments on-chain.

History & Background

xStocks was launched in June 2025 by Backed Finance, a Swiss-regulated entity with a long track record in RWA issuance. The platform debuted with support from Kraken and Bybit, initially offering over 55 tokenized US stocks and ETFs.

In December 2025, Kraken announced its acquisition of Backed Finance, integrating tokenized stock minting and settlement natively into Kraken's own infrastructure. xStocks has since grown to cover hundreds of tokenized equities, with TSMC being among its flagship offerings due to TSMC's global relevance in chip manufacturing.

How TSMC xStock Works

The mechanism behind TSMx is straightforward. When a token is issued, Backed Finance purchases an actual TSMC share through a traditional broker and deposits it with a regulated custodian in a segregated custody account. One token is then minted to represent that one share.

Redemption works in reverse — tokens are burned and the underlying share is sold, with proceeds returned to the holder. This ensures every TSMx token is always collateralized 1:1 by a real asset. Proof of reserves is publicly verifiable through the xStocks DeFi Dashboard.

Corporate actions such as dividends and stock splits are handled via token rebasing, automatically adjusting holder balances so that 1:1 exposure is maintained at all times.

Tokenomics

The supply of TSMx is dynamic — tokens are minted when new TSMC shares are purchased by Backed Finance and burned upon redemption. This elastic supply model ensures the token supply always reflects the number of real shares held in custody.

TSMx tokens are freely transferable and permissionless, making them composable with DeFi protocols. They can be used as collateral, lent, or traded like any standard on-chain token, extending their utility well beyond simple price exposure.

Circulating Supply ? 11,814 TSMx
Total supply ? 257,021 TSMx
Max supply ? -- TSMx
Updated 4d ago

Ecosystem & Use Cases

TSMx can be traded 24/7 on both centralized and decentralized exchanges, offering continuous price exposure to TSMC — unlike traditional stock markets that operate on fixed schedules. Fractional ownership is supported, allowing users to buy as little as $1 worth of exposure.

Because TSMx follows standard token formats, it integrates natively with DeFi protocols for use in lending, collateral, and liquidity strategies. The xStocks CCIP bridge enables movement of TSMx between supported blockchains without selling the position.

Team, Governance & Community

xStocks is operated by Backed Finance, a Swiss-based company regulated under applicable financial laws. Following Kraken's acquisition of Backed Finance, the project benefits from the infrastructure, liquidity, and institutional reach of one of the world's largest crypto exchanges.

The xStocks Alliance includes notable partners such as Chainlink, Raydium, and Jupiter, providing oracle, liquidity, and DeFi integration support across the ecosystem.

Advantages

  • 1:1 asset backing with publicly verifiable proof of reserves
  • 24/7 trading without the limitations of traditional market hours
  • Fractional ownership starting from $1, lowering investment barriers
  • Multi-chain availability across Ethereum, Solana, Arbitrum, and more
  • DeFi composability — usable in lending, collateral, and liquidity protocols
  • Automatic corporate action handling via token rebasing

Risks & Challenges

  • Regulatory risk — tokenized securities are subject to evolving global regulations and are not available to US users
  • Custodian risk — reliance on a third-party custodian to hold the underlying shares
  • Secondary market pricing — token price on exchanges may deviate from the underlying TSMC share price
  • Jurisdictional restrictions — availability varies by country and platform
  • Smart contract risk — as with all on-chain tokens, vulnerabilities in contract code could pose a threat

Long-Term Vision

TSMx represents a broader vision of making the global stock market accessible on-chain to anyone, anywhere. By bridging traditional capital markets with decentralized infrastructure, xStocks aims to create a permissionless, always-on equity market. With Kraken's institutional backing and partnerships with institutions such as Nasdaq and Franklin Templeton, the xStocks ecosystem is positioned to expand its tokenized asset offerings significantly, with TSMC remaining a cornerstone of its blue-chip equity lineup.

Frequently Asked Questions

TSMx is a tokenized representation of TSMC (Taiwan Semiconductor Manufacturing Company) stock issued by Backed Finance. Each token is backed 1:1 by a real TSMC share held in regulated custody.

TSMx is issued by Backed Finance, a Swiss-regulated real-world asset issuer. Backed Finance was acquired by Kraken in December 2025, integrating xStocks issuance into Kraken's infrastructure.

No. xStocks, including TSMx, are not marketed, offered, or available to users in the United States. They are available to eligible users in over 110 other countries.

Every time a TSMx token is minted, Backed Finance purchases one real TSMC share and holds it with a regulated custodian. Tokens are burned upon redemption, ensuring the supply always matches the number of shares held.

Corporate actions like dividends and stock splits are reflected through token rebasing, which automatically adjusts token balances. This keeps every holder's 1:1 exposure to the underlying TSMC equity intact.

TSMx is available on Ethereum, Solana, Arbitrum, and other EVM-compatible networks. The xStocks CCIP bridge allows holders to move tokens between supported chains without selling their position.

Yes. Since TSMx follows standard token formats (ERC-20 on EVM chains and SPL Token-2022 on Solana), it can be used as collateral, lent, or traded within compatible DeFi protocols like any other on-chain token.

Proof of reserves for all xStocks, including TSMx, is publicly available through the xStocks DeFi Dashboard. Underlying securities are held in segregated custody accounts that can be independently verified.