Go ad-free with Coinranking Elite. Go ad-free with Elite. No ads. Full Pro Chart. All premium features. No ads. Full Pro Chart.

Cloudflare xStock (NETx) logo

What is Cloudflare xStock (NETx)?

Quick Facts

  • Issuer: Backed Finance AG, a tokenized real-world asset company
  • Underlying asset: Cloudflare, Inc. (NYSE: NET) stock
  • Backing ratio: 1:1 — each NETx represents one real Cloudflare share
  • Trading: Available 24/7 on crypto exchanges and DEXs
  • Chains: Ethereum, BNB Smart Chain, Solana, Mantle, TON, and more
  • Token standard: ERC-20 (and equivalent standards on other chains)
  • Category: Real-world asset (RWA) tokenized equity

Introduction

Cloudflare xStock (NETx) is a tokenized stock that brings exposure to Cloudflare, Inc. onto the blockchain. Issued by Backed Finance, each NETx token is backed one-to-one by a real Cloudflare share held with a qualified custodian.

This means the token's price mirrors the price of NET on traditional stock exchanges, but with the flexibility of a crypto asset — tradeable anytime, from a Web3 wallet, on any supported chain.

History & Background

Backed Finance AG is a company focused on tokenizing publicly traded securities and ETFs. It launched the xStocks product line as its flagship tokenized-equity brand, offering on-chain representations of well-known stocks and funds.

NETx was introduced as part of this xStocks suite, giving crypto-native users direct price exposure to Cloudflare — one of the leading cloud networking and cybersecurity companies listed on the NYSE.

How Cloudflare xStock Works

Backed Finance purchases real Cloudflare shares on traditional markets and holds them with a custodian. It then mints an equivalent number of NETx tokens on supported blockchains. Each token is therefore fully collateralized by the underlying equity.

When the Cloudflare share price moves, the NETx token price follows. Eligible holders can redeem tokens for the underlying asset through Backed's platform, subject to applicable terms and regulatory requirements.

Tokenomics

NETx follows a mint-and-burn model tied directly to real share inventory. New tokens are only minted when additional Cloudflare shares are purchased and held in custody, keeping the backing ratio at 1:1 at all times.

Tokens are burned when holders redeem. This design means the token supply is always a reflection of actual custodied shares — not an arbitrary fixed amount.

Ecosystem & Use Cases

NETx is part of the broader xStocks ecosystem, which spans multiple blockchains and integrates with DeFi protocols. Use cases include:

  • Stock price exposure without a traditional brokerage account
  • 24/7 trading beyond traditional market hours
  • Cross-chain portability across Ethereum, Solana, BNB Smart Chain, and others
  • DeFi integration — usable in on-chain liquidity pools and lending markets where supported

Team, Governance & Community

NETx is issued and governed by Backed Finance AG, a centralized issuer operating under Swiss financial regulations. Governance decisions, custody arrangements, and redemption processes are managed by the Backed team rather than a decentralized protocol.

The xStocks platform targets both retail crypto users and institutional participants seeking on-chain access to traditional equity markets.

Advantages

  • Full collateralization: Every token is backed 1:1 by a real share held in custody
  • 24/7 accessibility: Trade Cloudflare stock exposure at any time, even outside NYSE hours
  • Multi-chain availability: Deployments across major blockchains give broad DeFi access
  • Familiar exposure: Tracks a well-known, publicly listed company with transparent price discovery

Risks & Challenges

  • Centralized issuer risk: Backed Finance controls minting, redemption, and custody — a single point of failure
  • Regulatory uncertainty: Tokenized securities face evolving regulations across jurisdictions; access may be restricted
  • Counterparty and custody risk: The safety of the underlying shares depends on the custodian's reliability
  • Limited liquidity: On-chain trading volumes for NETx remain modest compared to the underlying stock

Long-Term Vision

NETx represents a step toward a future where traditional equities and blockchain-based finance converge. Backed Finance's broader goal is to make any publicly traded asset accessible on-chain, 24/7, to anyone with a crypto wallet.

As regulatory frameworks for tokenized securities mature and DeFi infrastructure deepens, products like NETx are positioned to serve as bridges between conventional capital markets and the open, programmable world of blockchain finance.

Frequently Asked Questions

NETx is a tokenized stock issued by Backed Finance that tracks the price of Cloudflare, Inc. (NYSE: NET) shares. Each token is backed 1:1 by a real Cloudflare share held with a custodian.

NETx is issued by Backed Finance AG, a Swiss company specializing in tokenized real-world assets. Backed purchases actual shares, holds them in custody, and mints equivalent tokens on supported blockchains.

Backed Finance buys one real Cloudflare share for every NETx token minted and holds it with a qualified custodian. If tokens are redeemed or burned, the corresponding shares are released or sold.

NETx is deployed on multiple chains including Ethereum, BNB Smart Chain, Solana, Mantle, TON, and others. This multi-chain presence allows users to hold and trade it across different DeFi ecosystems.

Yes. Because NETx is a crypto token, it can be traded 24/7 on supported exchanges and DEXs, unlike Cloudflare stock on traditional exchanges which only trades during NYSE hours.

Not exactly. NETx gives you price exposure to Cloudflare stock but operates under the rules of the xStocks platform. Eligibility to hold or redeem the underlying shares depends on Backed's terms and your jurisdiction.

Key risks include reliance on Backed Finance as a centralized issuer, counterparty and custody risk for the underlying shares, regulatory restrictions in certain jurisdictions, and relatively low on-chain liquidity.

NETx can be traded on decentralized exchanges (DEXs) that support the xStocks token suite, as well as through the xStocks platform directly. Availability depends on your region and applicable regulations.