Question 1

What is PMx?

Accepted Answer

PMx (also written as PMX) is Philip Morris xStock, a tokenized stock tracking certificate issued by Backed Assets (JE) Limited in the form of Solana SPL and ERC-20 tokens. It tracks the price performance of Philip Morris International Inc. (ticker: PM) and is intended to provide on-chain price exposure related to that stock. It is not common stock directly issued by Philip Morris International Inc. Holders own the issuer's tokenized tracking product; therefore, when understanding PMx, “price correlation” and “direct ownership of company shares” should be distinguished.

Question 2

What is the difference between PMx and PM stock?

Accepted Answer

PM is the ticker for Philip Morris International Inc. stock traded on the New York Stock Exchange; PMx is an on-chain tokenized product that tracks that stock's price. Their connection is based on the underlying stock represented by PMx, rather than the two being the same type of asset in legal status or rights. Purchasing PMx does not mean holding PM shares on the company's shareholder register. PMx issuance, custody, trading availability, and redemption are governed by its product documents and applicable platform rules; PM shares themselves are subject to traditional securities holding and trading arrangements.

Question 3

Does holding PMx mean holding company stock?

Accepted Answer

No. PMx provides indirect exposure to changes in the share price of Philip Morris International Inc. and does not constitute direct ownership of the underlying stock. The product page expressly states that holding tokenized stock does not confer voting rights, information rights, or other shareholder rights. The practical implication of this distinction is that, even if PMx's value is linked to the underlying stock, holders cannot claim the corporate rights that common shareholders can claim merely by holding PMx. Whether and how specific corporate actions such as dividends are passed through also cannot be presumed without express statements in the applicable product documents.

Question 4

How is PMx connected to the underlying stock?

Accepted Answer

PMx's connection to the underlying stock comes from reserve backing: Kraken's product description states that each PMx is backed 1:1 by real Philip Morris International Inc. stock held by a third-party custodian. The issuer's product page likewise defines PMx as a certificate that tracks the price of that underlying asset. “1:1 backing” means each token has corresponding custodial underlying assets as its basis of support; it does not make token holders direct shareholders of the stock. PMx's trading price remains affected by changes in the underlying price as well as token-market trading conditions, liquidity, and other factors.

Question 5

Which blockchain networks can PMx be used on?

Accepted Answer

The issuer lists PMx as an ERC-20 token on Ethereum and EVM-compatible networks and as an SPL token on the Solana network. ERC-20 and SPL are token standards for their respective networks, not two different PMx economic interests. Whether the token can actually be deposited, withdrawn, or used on a particular chain depends on whether the wallet and service platform support that token standard and network. When transferring, a network compatible with the receiving address must be selected; sending tokens to an incompatible network or address may result in assets that cannot be recovered as expected.

Question 6

Are there fees for holding, subscribing to, or redeeming PMx?

Accepted Answer

The issuer currently states that PMx does not charge a management fee, but reserves the possibility of introducing a management fee of up to 0.25% per year in the future. Subscription and redemption fees are up to 0.50% of the amount entering or exiting the transaction. Management fees and subscription/redemption fees apply at different points: the former is an ongoing product-level fee arrangement, while the latter arises in the process of entering or exiting the product through the issuer. In addition to these product fees, users may also face on-chain network fees or fees charged by the service platform used, depending on the actual transaction path.

Question 7

Can PMx be redeemed?

Accepted Answer

PMx holders may apply for redemption under Backed's process or sell on platforms that support the product; Kraken states that its users can redeem xStocks with Backed, but additional fees apply. The outcomes of the two paths differ: selling involves a transaction with a buyer in the market, while redemption enters the exit process specified by the issuer. Redemption is not automatically available to everyone or in every location. The issuer's page provides that the product is subject to geographic and investor-eligibility restrictions, and notes that U.S. persons and persons in other restricted jurisdictions may not acquire or hold the relevant product; applicants must also comply with product documents and applicable rules. Therefore, before planning to redeem after buying or transferring in, users should first confirm their eligibility and the available process.

Question 8

What are PMx's main risks?

Accepted Answer

PMx's main risks include declines in the underlying stock price, changes in token-market liquidity and trading conditions, and availability risks arising from product eligibility, custody, redemption, and geographic restrictions. Because it provides price exposure rather than direct equity ownership, holders also do not have the voting and information rights of stockholders. 1:1 custodial backing explains the support arrangement between the token and the underlying asset; it does not eliminate price volatility or guarantee that the token can be sold or redeemed at a particular price at any time. Both the issuer and platform warn that invested amounts may be partially or entirely lost, and historical performance shown on the product page does not guarantee future performance.

Philip Morris xStock (PMX) Price