Broadcom xStockPrice

(AVGOX)

Broadcom xStock (AVGOX) is a tokenized stock, also referred to as a tracker certificate. Unlike standard utility or governance tokens, it is a digital asset issued on blockchains such as Solana or Ethereum that tracks the price of Broadcom Inc. (AVGO) on a 1:1 basis. It bridges traditional finance and decentralized finance by providing investors with price exposure to the stock through a digital token backed by actual shares held in regulated custody.

No. AVGOX provides price exposure but does not make the holder a registered shareholder on Broadcom's books. Consequently, holders do not receive voting rights. While the token tracks the underlying asset's price, it functions as a tracker product. Regarding dividends, these are typically treated as tracker products that reflect the net price, and investors do not receive traditional corporate dividend distributions directly from Broadcom.

The tokens are issued by Backed Assets (JE) Limited, a company specializing in bringing real-world assets (RWA) onto the blockchain. The product is issued under a prospectus approved in jurisdictions like Switzerland and Liechtenstein, making it regulatory-compliant in those specific regions. However, it is important to note that it is not registered as a security in the United States and is subject to different regulatory frameworks than traditional stocks.

Due to regulatory requirements, U.S. persons are generally prohibited from buying these tokens. They are designed for non-U.S. retail and institutional investors. While the token can be traded on secondary markets, redemption for the underlying physical shares is typically reserved for "Qualified Investors" through the issuer, Backed, and is usually subject to high minimum amounts and specific fees.

AVGOX is primarily issued as a Solana SPL token and an ERC-20 token on the Ethereum blockchain. This allows it to be integrated into various decentralized finance protocols. For investors in eligible regions, the token can be found on LBank and other supporting platforms. While the token can be traded 24/7 on global exchanges, its liquidity may fluctuate depending on whether the traditional U.S. stock market is open or closed.

To address counterparty risk, the underlying shares are held in segregated accounts by regulated third-party custodians, such as Maerki Baumann & Co. or InCore Bank. This legal structure is intended to ensure that the assets are protected from the issuer's creditors. Because the shares are held separately from the issuer's own balance sheet, the 1:1 backing should theoretically remain secure even if the issuer encounters financial difficulties.