xStocks

xStocks are tokenised representations of TradFi assets, designed to provide economic exposure to the corresponding underlying asset in a format built for crypto-native venues and workflows.

They can be issued and redeemed in a primary market, then held in wallets, transferred, and traded across exchanges and DeFi. Holders receive price and dividend exposure, but not shareholder rights or a direct legal claim to the underlying shares.

xStocks handle corporate actions through the Multiplier. Each xStock has a fixed raw balance on-chain, and the Multiplier is a cumulative scaling factor maintained by the issuer that maps that raw balance to the holder's displayed token balance and economic exposure.

Raw balance changes only when tokens are minted, burned, or transferred. The Multiplier starts at 1.0 and updates with corporate actions, so displayed token balances adjust automatically without holders needing to do anything.

Corporate actions move the price of the underlying asset in TradFi. A split divides the quoted price, a dividend creates an ex-dividend price drop, and other events affect the price path in their own ways.

xStocks need to mirror that price path so each token stays aligned with the custodied share it represents and the 1:1 backing remains arbitrage-free. The Multiplier is there to preserve holder value, not to freeze the price.