Research summary
Backpack, a crypto exchange, lets its users buy US stocks and withdraw them to Solana as tokens. CoinGecko lists the SpaceX token as "SpaceX (Backpack Securities)," worth about $6.5 million. The token is issued by Trek Nexus Markets Ltd, an unregulated company in the British Virgin Islands, and its terms call it a "digital receipt" for a pro rata share of a bare trust over the pooled shares, an entitlement they qualify as "(if any)." The holder of the token is not the beneficiary. While Backpack supports the tokens, the issuer "shall record and recognise only Trek Forge," a Backpack affiliate, as holder and sole beneficiary. A wallet holder gains standing only if Backpack stops supporting the tokens, fails, or blocks redemptions for more than 90 days. Until then the only way to turn a token back into stock is to deposit it into a Backpack account. For a US advisor the answer is no: the service is closed to US residents and the tokens may not go to US persons. Even outside the United States, the holder owns a receipt the issuer does not recognise, from a BVI company that names no custodian for the shares, and one authority on chain can freeze any account and move any balance.
Observable review triggers
- The issuer recognises wallet holders as beneficiaries, or a Direct Redemption Contingency occurs
- The custodian of the pooled shares is named, or the trust instrument is published
- The freeze or permanent-delegate authority is used against a holder, or a transfer hook is set
- Backpack opens the tokens to US persons
Facts on file
- Research assessment
- Adverse
- Client selection
- Not considered
- Exposure
- tokenized RWA
- Chains examined
- Solana
- Instruments
- SPCX, MU, SNDK, DRAM, HOOD, INTC, NKE, MSTR
- Reviewed
- Next review