Tokenized
NVIDIA

The tokenized equities market has undergone an explosive transformation. According to a January 2026 report from Sentora and DL Research, tokenized stocks reached approximately $963 million in market value — a 2,900% year-over-year increase from just $32 million in January 2025. This explosive growth represents one of the fastest-expanding segments of the real-world asset tokenization market.

The market remains concentrated among a few key issuers. Ondo Global Markets holds the largest share, accounting for more than half of tokenized equity value. Kraken's xStocks and Securitize represent most of the remainder. This concentration reflects the early-stage nature of the market and the importance of regulated issuance frameworks.

The broader context is equally dramatic. According to a February 2026 Cornell Business analysis, the total market capitalization of tokenized stocks has grown more than 50x in 2025. While $963 million represents only 0.0004% of the global stock market's $147.6 trillion total value, Citigroup projects tokenized securities could reach $4-5 trillion by 2030.

Key platforms and their positions in the tokenized equities landscape:

The momentum is accelerating. Kraken's acquisition of Backed Finance in December 2025 consolidated the largest tokenization issuer with the most active trading platform. xStocks has surpassed $20 billion in total trading volume with 37,000+ unique holders. And in February 2026, Kraken expanded xStocks to Deutsche Börse's 360X regulated platform — bringing institutional-grade European infrastructure to tokenized equities.

The tokenized equities market crossed a critical institutional threshold in late 2025 and early 2026. Three developments signal that tokenized stocks are moving from crypto-native experimentation to mainstream capital market infrastructure.

Kraken acquires Backed Finance (December 2025). Kraken acquired Backed Finance, the Switzerland-based tokenization specialist behind bNVDA and the xStocks infrastructure. xStocks had already surpassed $10 billion in combined trading volume within six months of launch. Kraken co-CEO Arjun Sethi stated that the acquisition allows deeper integration of stocks and ETFs into the platform. The move is backed by $800 million in total funding, including investment from Citadel Securities.

Deutsche Börse 360X integration (February 2026). Kraken launched xStocks on Deutsche Börse Group's 360X platform — a regulated European marketplace for secondary trading. This represents a major bridge between traditional exchange infrastructure and tokenized assets, enabling institutional investors to trade tokenized U.S. equities in a fully regulated environment.

DTC Digital Twins (2026 authorization). Perhaps the most consequential development: the Depository Trust Company (DTC) will be permitted beginning in 2026 to create blockchain-based "digital twins" of securities it already holds — including U.S. equities, ETFs, and Treasury securities — on approved distributed ledger networks. This embeds compliant tokenization directly within the core plumbing of U.S. capital markets. Combined with new SEC guidance on broker-dealer custody of tokenized assets issued in December 2025, the regulatory rails for tokenized securities are emerging rapidly.

The investment case for tokenized NVIDIA intensifies with each institutional development. When the DTC enables digital twins of NVDA shares on blockchain, the distinction between "traditional" and "tokenized" NVIDIA stock begins to blur entirely.

Tokenized equities unlock a fundamentally new capability that traditional brokerage accounts cannot offer: composability with decentralized finance protocols. Your tokenized NVIDIA position doesn't just sit idle — it can work as productive capital across the DeFi ecosystem.

Collateralized borrowing. Tokenized stocks can serve as collateral for on-chain loans through protocols like Aave and Compound. Deposit bNVDA or NVDAx, borrow stablecoins against your position, and deploy that capital elsewhere — without selling your NVIDIA exposure. Typical LTV ratios for tokenized equities range from 50-70%, reflecting both the collateral quality and the early-stage nature of the market.

Liquidity provision. Provide liquidity in bNVDA/USDC or NVDAx/USDC pools on decentralized exchanges like Uniswap (Ethereum) or Orca (Solana). As a liquidity provider, you earn trading fees from every swap — effectively generating yield on your NVIDIA position. Note the impermanent loss risks if NVDA price moves significantly.

Structured products. Tokenized equities enable the creation of on-chain structured products — baskets of tokenized stocks, hedged positions combining equities with options-like payoffs, or yield-enhanced strategies that would be prohibitively complex through traditional brokerages. Projects building in this space include Index Coop and Enzyme Finance.

Cross-chain arbitrage. Price discrepancies between bNVDA on Ethereum and NVDAx on Solana — and between both and NVDA's actual stock price — create arbitrage opportunities for sophisticated traders. Settlement speed differences (Ethereum ~12 seconds, Solana ~400ms) create temporary pricing windows that automated strategies can exploit.

Critical caveat: DeFi strategies carry smart contract risk, oracle risk, and liquidity risk in addition to standard equity market risk. The tokenized equities DeFi ecosystem is still maturing. Start small, verify protocol audits, and never allocate more than you can afford to lose entirely.

The regulatory framework for tokenized equities is crystallizing rapidly across multiple jurisdictions, creating a more favorable environment for products like bNVDA and NVDAx.

Switzerland — DLT Act. Both bNVDA and NVDAx are issued under the Swiss DLT Act, which provides a clear legal framework for tokenized securities. Backed Finance is headquartered in Zug and issues tokens as compliant DLT securities with an approved EU prospectus. This Swiss framework has become the global gold standard for tokenized equities issuance.

European Union — MiCA. The Markets in Crypto-Assets Regulation (MiCA) became fully effective in January 2025. While MiCA primarily addresses crypto-assets rather than tokenized securities (which fall under existing securities regulation), its framework for stablecoins and service providers creates regulatory clarity for the broader ecosystem in which tokenized equities operate. Backed's EU prospectus approval ensures compliance across EEA member states.

United States — Evolving rapidly. The SEC issued new guidance on broker-dealer custody of tokenized assets in December 2025. The DTC's authorization to create blockchain-based digital twins of existing securities starting in 2026 is a watershed moment. However, tokenized equities from non-US issuers like Backed remain unavailable to US persons under Regulation S. The GENIUS Act for stablecoin regulation and SEC Project Crypto further signal the direction of travel.

Singapore & UAE. The Monetary Authority of Singapore (MAS) and Dubai's VARA framework continue to evolve as hubs for digital asset innovation. Both jurisdictions are likely to see increased tokenized equity activity as regulatory clarity improves.

The trajectory is clear: tokenized equities are moving from regulatory gray zones to explicitly sanctioned financial products. Each new authorization — whether from the DTC, SEC, or Deutsche Börse — de-risks the investment case for products like bNVDA.

Important: Tokenized NVIDIA (bNVDA and NVDAx) is not available to US persons. You must be a non-US resident in an eligible jurisdiction. This is not financial advice — consult a qualified advisor before investing.

Option A: Buy NVDAx on Kraken (Easiest)

1. Create a verified account on Kraken. Complete KYC verification. 2. Navigate to xStocks section and search for NVDAx. 3. Accept updated Terms of Service and confirm non-US status. 4. Fund with USD, USDG stablecoin, or crypto. Trading fees are zero when purchasing with USDG or USD. 5. Buy from as little as $1. Your position settles instantly. 6. Optionally withdraw NVDAx to a self-custody Solana wallet for 24/7 on-chain trading.

Option B: Buy bNVDA on INX or DEX (Advanced)

1. Create a verified account on INX or acquire bNVDA through a decentralized exchange on Ethereum. 2. Complete KYC/AML verification. bNVDA can only be purchased directly by qualified investors onboarded with Backed. 3. Fund with crypto and trade bNVDA against USDC or ETH pairs. 4. Store in any ERC-20 compatible wallet (MetaMask, Ledger, etc.) for full self-custody.

Option C: Deutsche Börse 360X (Institutional)

Qualified participants of Deutsche Börse's 360X platform can access xStocks in a fully regulated European exchange environment. Contact your institutional broker for access.

Tokenized equities introduce a distinct risk profile that compounds traditional equity market risks with blockchain-specific risks. Investors must understand both layers.

Equity risk. bNVDA and NVDAx track NVDA 1:1. If NVIDIA's stock declines — whether from AI spending slowdowns, competitive disruption from AMD, Chinese export restrictions, or a broader market downturn — your tokenized position declines equally. NVIDIA's 70%+ gross margins and forward P/E of 25x assume sustained AI infrastructure spending. If hyperscaler capex contracts, the repricing could be severe.

Platform/issuer risk. Backed Finance is the issuer and custodian intermediary. If Backed faces insolvency, regulatory action, or operational failure, token redemption could be delayed or impaired. Kraken's acquisition in December 2025 significantly de-risks this by providing Backed with stronger capitalization and institutional backing ($800M in funding), but counterparty risk remains non-zero.

Smart contract risk. bNVDA and NVDAx are smart contracts on Ethereum and Solana respectively. Smart contract bugs, exploits, or blockchain network failures could affect token functionality. Both chains have experienced outages and exploits historically.

Regulatory risk. While the current trajectory favors tokenized securities, regulatory frameworks could change. New restrictions in the EU, Switzerland, or target markets could limit trading, force delistings, or require structural changes to tokenized equity products.

Liquidity risk. Tokenized equities have significantly less liquidity than the underlying stocks. bNVDA's total asset value is approximately $30,000 with only 23 holders (per RWA.xyz). NVDAx has deeper liquidity at $123M market cap but is still a fraction of NVDA's daily trading volume. Large positions may face slippage.

No shareholder rights. Neither bNVDA nor NVDAx confer voting rights, proxy participation, or direct corporate governance access. You receive economic exposure only.

Tax complexity. Tokenized equities may fall into ambiguous tax categories — treated as securities in some jurisdictions, digital assets in others. Consult a tax professional in your jurisdiction. Switzerland generally does not tax capital gains on private assets, but other jurisdictions vary significantly.

Wall Street consensus on NVIDIA (NVDA) heading into 2026 is overwhelmingly bullish. Of 64 analysts covering the stock, 60 recommend buying shares, including 12 with Strong Buy ratings according to StockAnalysis. The consensus 12-month price target stands at approximately $255-264, implying 35-40% upside from current levels around $185-192.

The range of targets reveals the spectrum of conviction. At the bullish extreme, Evercore ISI analyst Mark Lipacis has set a street-high target of $352 per share — an 83% upside. Lipacis cites accelerating revenue growth that could reach 79% by mid-2026, driven by the massive $500 billion order book NVIDIA has accumulated for its Blackwell GPU platform. At the bearish end, Seaport Research's Jay Goldberg recommends selling with a $140 target, citing valuation concerns and potential AI spending deceleration.

The key catalysts for 2026 center on three dynamics. First, data center revenue is projected to roughly double, with Wall Street expecting $320-330 billion in data center sales for the calendar year. Goldman Sachs projects hyperscaler AI capex could reach $527 billion in 2026, with NVIDIA capturing approximately 60% of that spend. Second, the Vera Rubin chip architecture enters production in H2 2026 — every major cloud provider has committed as a first deployer. Third, China re-entry: Reuters reports that Chinese tech firms have placed orders for over 2 million H200 GPUs, potentially generating $40+ billion in incremental revenue after government revenue-sharing.

Multiple analysts project NVIDIA could reach a $6-9 trillion market capitalization by year-end 2026. Motley Fool analysis suggests a midpoint of $7-9 trillion, corresponding to roughly $330 per share — over 70% upside. Seeking Alpha projects a conservative $302 fair value based on forward P/E and FY2027 EPS estimates. Even 24/7 Wall St.'s more cautious assessment sets a year-end target of $300.14, accounting for tariff risks and DeepSeek competition.

The bear case centers on AI spending sustainability. Deutsche Bank analysts note that industry leader OpenAI could burn through $143 billion by 2029, and its planned IPO in H2 2026 could expose the public to the challenging unit economics behind the AI boom. If hyperscaler capex contracts, NVIDIA's 70%+ gross margins could compress. The forward P/E of 25x assumes sustained growth — any deceleration would trigger a repricing event.

For tokenized NVIDIA investors: Price target ranges of $250-352 translate directly to bNVDA and NVDAx value. A move from $185 to $300 represents 62% upside on your on-chain position — with the added benefit of 24/7 liquidity and DeFi composability that traditional shareholders don't have.

Artificial intelligence represents the largest technology investment cycle since the internet. The global AI market is projected to reach $1.8 trillion by 2030 according to the McKinsey Global Institute, with a 37% CAGR through the decade per Grand View Research. Understanding how to invest in AI stocks requires a framework that separates infrastructure winners from application-layer speculation.

Layer 1: AI Infrastructure (Highest Conviction). This is where the proven revenue lives. NVIDIA commands 81-92% of data center GPU market share. TSMC fabricates virtually every advanced AI chip. Broadcom provides critical networking ASICs. These companies have tangible, accelerating revenue — NVIDIA's Q3 FY2026 hit $57 billion. For on-chain exposure, NVDAx on Kraken provides tokenized access to NVIDIA from as little as $1, tradeable 24/7.

Layer 2: Cloud & Hyperscalers. Amazon (AWS), Microsoft (Azure), and Google Cloud are both massive AI consumers and distributors. They're spending $527 billion on AI infrastructure in 2026 according to Goldman Sachs and monetizing through AI-enhanced cloud services. Tokenized versions are available: AAPLx for Apple's AI play, GOOGLx for Alphabet's Gemini ecosystem, and MSFTx for Microsoft's OpenAI partnership.

Layer 3: AI Software & Applications. This layer carries the most risk. Enterprise AI platforms like Palantir, Salesforce Einstein, and ServiceNow are monetizing AI features, but many consumer AI companies are burning cash rapidly. OpenAI's planned IPO could expose challenging economics behind the hype.

Layer 4: AI Robotics & Physical Intelligence. The emerging frontier. NVIDIA's partnership with Uber for autonomous vehicles, Tesla's robotaxi fleet, and a new generation of humanoid robotics companies represent multi-decade growth opportunities with high uncertainty. Tokenized Tesla (TSLAx) provides 24/7 on-chain exposure to this theme.

Portfolio construction for AI investing in 2026: A balanced approach might allocate 40-50% to infrastructure (NVIDIA, TSMC, Broadcom), 25-30% to hyperscalers (Microsoft, Amazon, Google), 15-20% to AI software with proven revenue, and 5-10% to speculative robotics/physical AI plays. Tokenized equities via xStocks enable fractional allocation across all layers from a single platform, with the unique benefit of DeFi composability for yield generation on your positions.

Critical caveat: AI investing carries concentration risk. The "Magnificent 7" tech stocks dominate market indices, and the AI infrastructure spending cycle is unprecedentedly large. Diversification across asset classes — not just across AI sub-sectors — remains prudent portfolio management. This is not financial advice; consult a qualified advisor.

The tokenized equities landscape has consolidated rapidly since 2025. Several platforms now offer institutional-grade access to on-chain stocks, each with distinct advantages depending on your jurisdiction, risk tolerance, and DeFi ambitions. Here is our independent assessment.

Key differentiator: shareholder rights. Most tokenized stock platforms (xStocks, Backed, Ondo) provide economic exposure only — you get the price movement and sometimes dividends, but no voting rights or corporate governance participation. Securitize and Superstate are exceptions: they issue SEC-registered on-chain shares where token holders are recorded as actual shareholders with full rights.

Geographic availability. xStocks is available in 160+ countries but excludes the US, Canada, UK, and Australia. Securitize serves US accredited investors. Backed/Ondo serve non-US qualified investors. Deutsche Börse's 360X integration (February 2026) adds a regulated European exchange venue for institutional xStocks trading.

For NVIDIA specifically: NVDAx on Kraken offers the deepest liquidity ($123M market cap), zero trading fees, $1 minimum investment, and self-custody withdrawal to Solana wallets. bNVDA on Ethereum offers Ethereum DeFi composability but has thin liquidity (~$30K total value). Our recommendation for most non-US investors: start with NVDAx on Kraken for simplicity and liquidity.

Tokenized equities represent a new category within the alternative investment landscape — assets that provide traditional equity exposure through non-traditional infrastructure. Understanding where they fit alongside other alternative investment platforms helps investors evaluate the opportunity.

Tokenized equities vs. fractional brokerage platforms. Platforms like Robinhood and Interactive Brokers offer fractional shares within traditional brokerage accounts. Tokenized equities via xStocks or Backed add 24/7 trading, blockchain self-custody, and DeFi composability — but sacrifice shareholder rights and add smart contract risk. For investors who value custody independence and round-the-clock access, tokenized equities win. For those who want voting rights and SIPC insurance, traditional brokerages remain superior.

Tokenized equities vs. crypto. Bitcoin and Ethereum are speculative digital assets. Tokenized equities like bNVDA track real companies with real revenue ($57B/quarter for NVIDIA). The risk profile is fundamentally different: tokenized NVIDIA rises and falls with NVIDIA's business performance, not crypto market sentiment. This makes tokenized equities a bridge product — they live on crypto rails but derive value from traditional equity markets.

Tokenized equities vs. real estate tokenization. Platforms like Lofty and RealT tokenize individual properties. Deloitte projects $4 trillion in tokenized real estate by 2035. Tokenized equities offer superior liquidity and global diversification but lack the tangible collateral and income streams of physical property. Both fall under the broader real-world asset (RWA) tokenization umbrella tracked by RWA.xyz.

Tokenized equities vs. private equity/venture. Platforms like Securitize and Republic offer tokenized access to private markets. These carry higher potential returns but extreme illiquidity and risk. Tokenized public equities like NVDAx offer the liquidity and transparency of public markets combined with blockchain infrastructure. For most investors, tokenized public equities represent a more accessible entry point into on-chain investing.

The broader trend is clear: according to Citigroup, tokenized securities across all categories could reach $4-5 trillion by 2030. Boston Consulting Group has projected even higher figures for the total addressable tokenized asset market. As infrastructure matures — DTC digital twins, SEC custody guidance, Deutsche Börse integration — the distinction between "alternative" and "mainstream" will dissolve.

At approximately $185-192 per share, a single NVIDIA stock costs more than many investors in emerging markets earn in a month. Fractional stock investing through tokenization removes this barrier entirely. NVDAx on Kraken allows purchases from as little as $1 — enabling 185x more granular position sizing than buying whole shares.

This isn't merely a convenience feature; it's a structural shift in global market access. According to Cornell Business School research, stock market participation in emerging markets ranges from just 5-15% of the adult population, compared to 55-62% in the United States per Gallup. Barriers include high minimum investment requirements, complex brokerage onboarding, limited market hours, and restricted cross-border access. Tokenized fractional equities address all four simultaneously.

The math of fractional investing: Consider an investor in Southeast Asia allocating $50/month to AI stocks through tokenized equities. At current prices, they could build a diversified portfolio: $20 in NVDAx (NVIDIA), $10 in AAPLx (Apple), $10 in TSLAx (Tesla), and $10 in GOOGLx (Alphabet) — four of the world's largest companies, accessed 24/7, with instant settlement, from a mobile phone. Through traditional brokerages, this portfolio would require approximately $700 for even single-share positions.

Dividend treatment in fractional tokenized stocks: xStocks automatically reinvest dividends by increasing your token balance rather than distributing cash. bNVDA reflects dividend value in its Net Asset Value. This auto-compounding mechanism can enhance long-term returns for fractional investors who might otherwise lose dividend value to minimum payout thresholds.

According to Morgan Stanley, emerging markets currently represent approximately 26% of global market capitalization — roughly $80-100 trillion in investable assets. If tokenized fractional investing captures even 1% of this addressable market, it represents a multi-hundred-billion-dollar opportunity. The combination of zero trading fees (Kraken xStocks with USDG), $1 minimums, and 24/7 access positions tokenized equities as the most accessible global equity investment channel ever created.

The regulatory landscape for tokenized securities has accelerated from theoretical frameworks to operational infrastructure in 2025-2026. Three jurisdictions are setting the pace, and their decisions will determine the trajectory of the entire tokenized equities market.

United States: The DTC watershed moment. The Depository Trust Company — which settles virtually all US equity trades — received authorization in 2026 to create blockchain-based "digital twins" of securities it already holds. This includes US equities, ETFs, and Treasury securities on approved distributed ledger networks. This is arguably the most consequential development in tokenized securities history: it embeds compliant tokenization directly within America's core capital market plumbing. Combined with the SEC's December 2025 guidance on broker-dealer custody of digital assets and a DTCC no-action letter for a tokenization pilot, the regulatory infrastructure for tokenized US equities is materializing rapidly.

European Union: MiCA and securities regulation. MiCA (Markets in Crypto-Assets Regulation) became fully effective January 2025 and governs crypto-asset service providers, stablecoins, and market integrity. However, tokenized securities like bNVDA fall under existing EU securities frameworks — the Prospectus Regulation, MiFID II, and CSDR — rather than MiCA itself. Backed Finance operates under an approved EU prospectus, ensuring compliance across EEA member states. The Deutsche Börse 360X integration demonstrates how traditional European exchange infrastructure is adopting tokenized assets within existing regulatory frameworks.

Switzerland: The gold standard. The Swiss DLT Act, effective since 2021, provides the most mature legal framework for tokenized securities globally. Both bNVDA and xStocks are issued under this framework by Backed Finance AG (Zug, Switzerland). The act defines DLT securities as equivalent to traditional securities for legal purposes, provides clear rules for issuance, transfer, and custody, and integrates with Swiss anti-money laundering requirements. Switzerland's approach has become the de facto global template for jurisdictions developing tokenized securities regulations.

Emerging frameworks: The Monetary Authority of Singapore continues iterating on its Project Guardian for tokenized assets. Dubai's VARA framework governs virtual assets in the emirate. Japan's FSA is developing rules for security tokens. Each jurisdiction's approach influences global capital flows and platform availability.

The GENIUS Act and US stablecoin regulation. While not directly governing tokenized equities, the GENIUS Act for stablecoin regulation creates the payment rails on which tokenized stock trading operates. USDG (Kraken's native stablecoin for zero-fee xStocks trading) and USDC operate within these frameworks. Clear stablecoin regulation reduces friction for converting fiat to tokenized equity positions and back.

The trajectory is unambiguous: every major financial jurisdiction is building regulatory infrastructure for tokenized securities. The question is no longer "if" but "how fast." For investors, each regulatory milestone — DTC digital twins, Deutsche Börse integration, new SEC guidance — de-risks the tokenized equities thesis and increases the probability that on-chain stocks become a permanent fixture of global capital markets.

The ability to use tokenized equities as productive DeFi collateral represents the single most differentiated advantage of on-chain stocks over traditional brokerage accounts. When your NVIDIA position can simultaneously generate yield, serve as loan collateral, and maintain equity exposure — you've unlocked a capability that traditional finance simply cannot replicate.

How on-chain collateralized lending works with tokenized stocks: You deposit bNVDA or NVDAx into a lending protocol like Aave, Compound, or specialized RWA lending platforms. The protocol values your collateral based on oracle price feeds (typically Chainlink) tracking NVDA's real-time stock price. You can then borrow stablecoins — USDC, USDT, or DAI — against your position, typically at 50-70% loan-to-value ratios.

Use case: Leveraged AI exposure without selling. Deposit $10,000 of NVDAx. Borrow $6,000 in USDC (60% LTV). Use that USDC to buy more NVDAx. You now have $16,000 of NVIDIA exposure on $10,000 of capital — 1.6x leverage — while maintaining full self-custody and paying only DeFi borrowing rates (typically 3-8% APR for stablecoins). Compare this to traditional margin borrowing through brokerages at 6-12% APR with less flexibility.

Use case: Liquidity provision. Provide bNVDA/USDC or NVDAx/USDC liquidity on Uniswap (Ethereum) or Orca (Solana). As a liquidity provider, you earn a share of every swap fee — effectively generating yield on your NVIDIA position. However, impermanent loss risk is significant: if NVDA moves substantially in either direction, your LP position underperforms simply holding the tokens. Concentrated liquidity positions on Uniswap v3 can optimize fee capture but require active management.

Use case: Structured products. Platforms like Enzyme Finance and Index Coop enable the creation of on-chain baskets and strategies. Imagine a "Tokenized AI Index" combining NVDAx, TSLAx, AAPLx, and GOOGLx in optimized weights — rebalanced automatically by smart contracts. Or a "covered call" equivalent using on-chain options protocols. These structured products are still emerging but represent the frontier of tokenized equity DeFi.

Risk framework: DeFi collateral strategies compound equity risk with protocol risk. Critical risks include smart contract exploits (protocol bugs), oracle manipulation (price feed attacks), liquidation cascades (margin calls during flash crashes), and liquidity risk (insufficient DEX depth for large positions). The tokenized equities DeFi ecosystem is still nascent. Protocol audits from firms like Trail of Bits, OpenZeppelin, and ConsenSys Diligence provide partial assurance but cannot eliminate smart contract risk entirely.

Practical starting point: Begin with simple collateralized borrowing on established protocols. Deposit NVDAx, borrow stablecoins at conservative LTV (40-50%), maintain a liquidation buffer. This generates leverage without the complexity of LP positions or structured products. Monitor your health factor daily. Never allocate more to DeFi strategies than you can afford to lose entirely.