Question 1

What is Cisco xStock (CSCOx)?

Accepted Answer

Cisco xStock (CSCOx) is a tokenized tracker certificate issued by Backed Assets (JE) Limited, with Cisco Systems, Inc. common stock (ticker: CSCO) as its underlying asset. Its purpose is to provide on-chain economic exposure related to that stock, rather than registering Cisco common stock directly in the token holder’s name. CSCOx belongs to the xStocks product range. The issuer states that products in this range are collateralized 1:1 by the corresponding underlying securities, which are held by a regulated custodian. Therefore, CSCOx should be understood across three layers: Cisco is the underlying company, CSCO is the underlying stock, and CSCOx is a certificate issued by a different issuer that tracks that stock’s value.

Question 2

Is holding CSCOx equivalent to holding Cisco stock?

Accepted Answer

No. Holding CSCOx provides economic exposure related to CSCO, not the status of a Cisco common shareholder; xStocks’ official documentation explicitly states that holders do not obtain shareholder rights such as voting rights as a result. This distinction does not disappear because the product has 1:1 underlying collateral. Collateralization and custody describe how the issuance structure supports the certificate’s economic exposure, while the legal category held by the token holder remains a tracker certificate. Therefore, holding CSCOx should not automatically be understood as allowing direct exercise of Cisco shareholder rights.

Question 3

How does CSCOx change when Cisco pays dividends, conducts a stock split, or conducts a reverse stock split?

Accepted Answer

When Cisco stock undergoes corporate actions such as dividends, stock splits, or reverse stock splits, xStocks uses an on-chain multiplier adjustment to change the economic exposure represented by CSCOx. Holders generally do not need to apply for this processing themselves. If the underlying pays a dividend, the custodian receives cash on behalf of the shares in custody; after applicable withholding tax, that cash is reinvested into additional shares of the same underlying rather than being paid directly to CSCOx holders. The multiplier is then increased so that holdings reflect the increased economic exposure. For an ordinary stock split, the multiplier is increased by the split ratio; for a reverse split, it is decreased. The multiplier takes effect at 00:30 UTC on the day after the ex-dividend date; this arrangement carries changes from corporate actions into the token’s economic exposure.

Question 4

What is the difference between CSCOx issuance, redemption, and secondary-market trading?

Accepted Answer

Primary-market issuance and redemption of CSCOx are different from a holder buying, selling, or transferring it on-chain in the secondary market. In the primary market, direct clients that have completed eligibility checks can issue or redeem through the issuer’s platform; in the secondary market, issued tokens can be transferred or traded among supported platforms, wallets, and protocols. The primary market requires account opening and KYC/AML eligibility. Issuance and redemption can use stablecoins, or physical delivery of the underlying stock through the xPort process; its operation is generally aligned with U.S. underlying-market opening hours, making it 24/5. The secondary market does not require users to interact directly with the issuer, and whether it can trade 24/7 depends on the platform used. Secondary-market prices are formed by supply and demand on each platform, so available trading hours should not be understood to mean that the issuer is always offering issuance or redemption at the underlying market price.

Question 5

Why can CSCOx balances display differently on EVM and Solana?

Accepted Answer

The CSCOx product page lists issuance in Solana SPL and ERC-20 token forms. Both implementations use the same multiplier logic for corporate actions, but wallets read displayed balances and transaction amounts differently. On EVM chains, the contract automatically reflects multiplier adjustments, and the standard balanceOf() returns the adjusted balance. On Solana, the raw token quantity on-chain can remain unchanged; a wallet or application should calculate the economic exposure shown to the user as “displayed balance = raw balance × multiplier,” while raw balance should be used when constructing a transfer. Therefore, a difference between the on-chain raw quantity and the wallet’s displayed quantity on Solana does not necessarily indicate an abnormal balance.

Question 6

What disclosed product fees does CSCOx have?

Accepted Answer

CSCOx currently charges no management fee; the issuer reserves the possibility of introducing a management fee of up to 0.25% per year in the future. This annual fee is a potential cost at the product holding level and is not the same item as blockchain network fees or trading-platform fees. When entering or exiting an investment through the issuer in the primary market, issuance and redemption fees can each be up to 0.50% of the value of that investment. Therefore, if a user uses an issuance or redemption channel, costs must at least distinguish the product’s issuance/redemption fee from fees that the selected network, wallet, or trading platform may charge separately; the latter are not rates listed on the product page.

Question 7

Who can obtain or redeem CSCOx directly from the issuer?

Accepted Answer

CSCOx cannot be obtained directly from the issuer by everyone in every region. Backed explicitly does not sell or market the product to U.S. persons, persons acting for the benefit of U.S. persons, or persons in other restricted jurisdictions; direct purchases must also be made through a licensed entity and meet the applicable qualified-investor conditions. The issuer’s website lists the following conditions for direct purchase: being a professional client under Swiss law; if located in the European Union or European Economic Area, also being a qualified investor as defined by the EU Prospectus Regulation; and, in other jurisdictions, having equivalent qualifications under local law. Tokens may be technically transferable on-chain, but this does not mean that transfers, platform services, or issuance and redemption are available in every jurisdiction.

Question 8

How should CSCOx’s price and main risks be understood?

Accepted Answer

CSCOx’s secondary-market price is determined by buying and selling supply and demand on each platform, so it can trade during periods allowed by that platform. However, it is designed to track CSCO’s economic value, and changes in the underlying stock’s own price remain central to understanding changes in the certificate’s value. In addition to underlying price volatility, users should consider secondary-market liquidity and supply and demand, whether the platform used supports correct multiplier handling, that issuance and redemption operate only during primary-market hours, and geographical and service-eligibility restrictions. The product page also notes that value may fluctuate substantially and that investors may in some circumstances be unable to recover their initial amount; these risks are not eliminated by the fact that the token can be transferred on-chain.

Question 9

Who issues CSCOx, and who is responsible for custody of the underlying securities?

Accepted Answer

CSCOx is issued by Backed Assets (JE) Limited, while the issuer of the underlying stock is Cisco Systems, Inc.; their responsibilities differ. Backed Finance AG acts as the tokenization services provider; the product page also lists service roles including a broker, custodian, and independent Security Agent. This division of roles corresponds to different stages of the product structure: the issuer issues the tracker certificate, the custodian safekeeps the corresponding underlying securities, and the Security Agent supervises the collateral arrangement. Understanding this structure helps distinguish two different sources of risk: Cisco’s operations and stock performance, versus the issuance, custody, availability, and settlement arrangements of CSCOx as an issuer certificate.

Cisco xStock (CSCOX) Price