What is NVIDIA tokenized stock (xStock) (NVDAX)?

Deep Dive

1. Purpose & Value Proposition

NVDAX bridges traditional finance and crypto by tokenizing NVIDIA shares. It allows global investors to gain exposure to NVIDIA’s AI-driven growth without direct stock ownership, brokerage accounts, or geographic restrictions. The token mirrors NVIDIA’s price movements while leveraging blockchain benefits like instant settlement and transparency (Backed Assets).

2. Technology & Architecture

NVDAX operates on Ethereum and Solana, using smart contracts to ensure 1:1 collateralization with actual NVIDIA shares held by regulated custodians like Alpaca Securities. This dual-chain approach enhances liquidity and interoperability across DeFi platforms (Phemex Academy).

3. Ecosystem Fundamentals

The token is tradable on exchanges like Bitrue and Gate.io, supporting spot and perpetual futures. It integrates with DeFi protocols for use as collateral, enabling yield farming or lending. Unlike traditional stocks, NVDAX trades 24/7, offers fractional shares (from $1), and avoids SEC restrictions for non-U.S. users (Bitrue Blog).

Conclusion

NVDAX democratizes access to NVIDIA’s equity through blockchain, combining stock market fundamentals with crypto’s flexibility. As tokenized assets gain traction, will NVDAX’s hybrid model set a precedent for broader RWA adoption?