Tokenized Securities

Overview

Backpack Securities combines real securities ownership with on-chain distribution.

Investors can hold eligible securities through established brokerage infrastructure, convert them into tokenized securities on Solana, and redeem tokenized securities back into the corresponding security entitlement through Backpack Securities.

By connecting traditional brokerage infrastructure and blockchain networks through a seamless, two-way door, Backpack creates a direct pathway between securities ownership and onchain distribution.

This gives investors the flexibility to access both traditional securities infrastructure and blockchain-native markets from a single platform.

Two Ways to Hold Securities

Every eligible security on Backpack can be held in one of two forms.

Traditional Securities on Backpack

Real security entitlements governed under New York law (UCC Article 8), supported by established brokerage, clearing, custody, and transfer infrastructure, with real ownership rights including cash dividends, corporate actions, brokerage transfers, and applicable tax treaty benefits.

Tokenized Securities Issued by Backpack

Self-custodied tokenized securities on Solana with 24/7 trading, wallet-to-wallet transfers, DeFi compatibility.

Moving Between the Two Forms

The two forms are connected through a seamless, two-way door.

Seamlessly convert traditional securities into tokenized securities and vice versa through Backpack Securities deposits and withdrawals. On/off-ramp securities between traditional brokerages and Solana.

See the Conversion Flow page for how deposits and withdrawals work.

Dividends and Corporate Actions

Dividends and corporate actions are supported across both ownership models.

• For securities held through Backpack Securities, cash dividends and corporate actions are processed through traditional brokerage infrastructure.

• For tokenized securities, dividend payouts are automatically reinvested into additional tokenized shares, while applicable corporate actions are reflected through proportional token balance adjustments designed to maintain economic equivalence with the underlying security.

Comparing the Two Ownership Models

The table below summarizes how the two forms compare across key dimensions.

Category	Traditional Securities on Backpack	Tokenized Securities Issued by Backpack
On/off-ramp	Can be tokenized and withdrawn to Solana as a tokenized security	Can be redeemed 1:1 into the underlying real shares
Brokerage Transfers	Available via ACATS- and DTCC-compatible brokerage infrastructure	Available after redemption into the corresponding security entitlement
Dividends	Cash dividends, with applicable tax treaty withholding benefits where available	Dividend payouts are automatically reinvested into additional tokenized shares
Corporate Actions	Supported through brokerage infrastructure, including stock splits, mergers, and certain spinoffs	Corporate actions are automatically reflected through tokenized share balance adjustments
Ownership Form	UCC Article 8 security entitlement	Tokenized claim
Legal Framework	New York law (UCC Article 8)	Claim on SPV holding the underlying assets
Price Exposure	Direct ownership of the security	Anchored 1:1 via mint and redemption mechanism
Where It Is Held	Backpack Securities account	Solana wallet
Custody Model	Traditional brokerage infrastructure	Self-custody
Accessibility	Backpack Securities brokerage accounts	Self-custody wallets
Liquidity	Access to real U.S. market liquidity (NYSE & Nasdaq)	Solana DEXs and onchain liquidity
Trading Hours	24/5 for most eligible securities; weekends and U.S. market holidays for select securities	24/7
Settlement	Traditional securities settlement infrastructure	Onchain settlement
Wallet Transferable	Yes — eligible assets only	Yes
DeFi Compatible	No	Yes

For more on ownership rights and the legal structure, see Real Ownership and Legal Framework.

How Backpack Tokenized Securities Differ from Typical Tokenized Stocks

Most tokenized stocks on the market stop at tracking the price. Tokenized securities issued by Backpack go further: each token is redeemable 1:1 for the real underlying security.

	Tokenized securities issued by Backpack	Typical tokenized stock
What you hold	Token redeemable for a real share of the underlying security through Backpack Securities	Usually a contractual claim that tracks the price
Dividends and corporate actions	Reflected onchain through rebasing designed to maintain economic equivalence with the underlying share	Varies by issuer; may be reflected through token mechanics or not supported
Redemption	Redeemable for a real share of the underlying security through Backpack Securities	Often not available; settlement in cash only; fees may apply
Trading hours	24/7 on Solana	Varies by venue
Where it works	Across Solana wallets and DeFi	Often limited to issuer or partner venues

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The descriptions provided herein are for informational purposes only. For details, please see the Backpack Securities Terms of Service, available in the User Agreement.