xStocks Issuer Chose Switzerland to Avoid Whitelisting Tokenized Tesla Shares: CEO
Switzerland's regulatory environment enabled Backed Finance to issue freely transferable tokenized stocks, bypassing the need for whitelisting. The company's xStocks brand, which includes digital representations of Tesla and Nvidia shares, has attracted approximately 30,000 unique holders since its June launch.
"We evaluated five jurisdictions," said Backed co-founder Adam Levi. "Switzerland was the only one where we could build what I'd actually use—a permissionless system." The decision highlights the tension between DeFi's open-access ethos and compliance requirements in traditional finance.
Tokenized Tesla shares currently dominate the platform's supply. Backed competes with Robinhood and Securitize in this emerging market for blockchain-based equity tokens.
