Essential terminology for understanding tokenized stocks, on-chain equity investing, and the broader RWA tokenization ecosystem.
bNVDA: Tokenized NVIDIA security on Ethereum, issued by Backed Finance. ISIN CH1173294336.
NVDAx: Tokenized NVIDIA on Solana via Kraken xStocks. $123M market cap.
xStocks: Kraken's tokenized equities platform. 60 stocks/ETFs, $20B+ volume.
ERC-20: Ethereum token standard. Used by bNVDA, bTSLA, and other Backed Finance tokens.
SPL Token: Solana token standard. Used by NVDAx, TSLAx, and other xStocks.
RWA (Real-World Assets): Physical or traditional financial assets represented as blockchain tokens.
NAV (Net Asset Value): The per-token value of the underlying asset backing a tokenized security.
Self-Custody: Holding tokens in a personal wallet rather than on an exchange.
LTV (Loan-to-Value): The ratio of borrowed amount to collateral value. 60% LTV = $6,000 borrowed on $10,000 collateral.
Collateral: Assets deposited to secure a loan. Tokenized stocks can serve as DeFi collateral.
Liquidity Pool: Paired token deposits enabling decentralized trading. E.g., NVDAx/USDC pool.
Impermanent Loss: Potential loss from providing liquidity when asset prices diverge.
Oracle: Service providing external data (stock prices) to blockchain protocols. Chainlink is dominant.
Swiss DLT Act: Swiss regulation providing legal framework for tokenized securities.
MiCA: EU Markets in Crypto-Assets Regulation, effective January 2025.
DTC (Depository Trust Company): US securities depository, authorized for blockchain digital twins in 2026.
Regulation S: SEC rule excluding non-US offerings from US registration. Why bNVDA/NVDAx aren't available to US persons.
CUDA: NVIDIA's Compute Unified Device Architecture. 4M+ developer ecosystem creating moat.
Vera Rubin: NVIDIA's next-gen GPU architecture, production H2 2026.
Blackwell: NVIDIA's current GPU architecture. $500B order book.
Market Cap (Tokenized): The total value of all outstanding tokens. NVDAx's $123M market cap means $123M worth of NVDAx tokens exist. This is distinct from NVIDIA's $4.45T corporate market cap.
TVL (Total Value Locked): The total value of assets deposited in a DeFi protocol. Used to measure protocol adoption and liquidity depth.
Volume: Total trading volume over a period. xStocks has surpassed $20B total volume since May 2025 launch.
Slippage: The difference between expected trade price and executed price. Higher for thin-liquidity tokens like bNVDA; lower for deep-liquidity tokens like NVDAx.
Health Factor: In DeFi lending, the ratio of collateral value to borrowed value. Below 1.0 triggers liquidation.
Gas Fee: Transaction cost on blockchain networks. Ethereum gas fees range $1-50+; Solana fees are typically under $0.01.
DCA (Dollar-Cost Averaging): Investing fixed amounts at regular intervals regardless of price. Reduces timing risk. NVDAx's $1 minimum enables micro-DCA strategies.
LTV (Loan-to-Value): Ratio of borrowed amount to collateral value. 60% LTV = $6,000 borrowed against $10,000 collateral.
PEG Ratio: Price/Earnings-to-Growth ratio. NVIDIA's PEG of ~0.8 suggests the stock is undervalued relative to its earnings growth rate. PEG below 1.0 is generally considered attractive.
Forward P/E: Stock price divided by projected next-year earnings per share. NVIDIA's forward P/E of ~25x is below the Nasdaq-100 average of ~26x.
RPM (Revenue Per Mille): Advertising revenue per thousand page impressions. Finance-focused content like bNVDA.com targets $15-45 RPM through high-value keyword targeting.
KYC (Know Your Customer): Identity verification required by financial regulations. Kraken, INX, and all regulated platforms require KYC before trading.
AML (Anti-Money Laundering): Regulations requiring financial institutions to monitor for suspicious activity.
GDPR: EU General Data Protection Regulation governing personal data collection and processing.
CCPA: California Consumer Privacy Act providing data rights to California residents.
FATF: Financial Action Task Force — international body setting AML/KYC standards that influence crypto regulation globally.
xStocks: Kraken's tokenized equities platform. 60 assets, $20B+ volume, 37K+ holders, 160+ countries.
Backed Finance: Swiss tokenization issuer behind bNVDA, NVDAx, and xStocks tokens. Acquired by Kraken December 2025.
360X: Deutsche Börse's regulated digital asset marketplace. Launched xStocks trading February 2026.
USDG: Kraken's native stablecoin. Enables zero-fee xStocks trading.
Phantom: Popular Solana wallet for self-custody of NVDAx and other SPL tokens.
MetaMask: Popular Ethereum wallet for self-custody of bNVDA and other ERC-20 tokens.
Aave: Leading Ethereum lending protocol where bNVDA can be used as collateral.
Uniswap: Largest Ethereum decentralized exchange for trading ERC-20 tokens including bNVDA.
Orca: Leading Solana decentralized exchange for trading SPL tokens including NVDAx.
RWA.xyz: Data aggregator tracking the real-world asset tokenization market including tokenized equities.
Sentora: Research firm (formerly IntoTheBlock/DL Research) that published the $963M tokenized equities market report.
Opening Bell: Superstate's tokenized public equities platform with full shareholder rights, $1B+ AUM.
CEX (Centralized Exchange): A traditional exchange like Kraken where a company operates the order book. xStocks trade on Kraken's CEX infrastructure.
DEX (Decentralized Exchange): A peer-to-peer trading protocol on blockchain. Uniswap (Ethereum) and Orca (Solana) are leading DEXs where tokenized equities can trade.
T+2 Settlement: Traditional stock markets settle trades two business days after execution. Tokenized equities settle instantly on-chain.
Slippage: The difference between expected and actual execution price. Relevant for large tokenized equity trades on thin DEX liquidity.
Bankruptcy-Remote: A legal structure where custodied assets are protected from the issuer's creditors. Both bNVDA and xStocks use bankruptcy-remote custody.
Counterparty Risk: The risk that a platform, issuer, or custodian fails. Mitigated by self-custody and diversification across platforms.
Smart Contract Risk: The risk of bugs or exploits in blockchain code. Protocol audits reduce but never eliminate this risk.
Regulatory Risk: The risk that new laws restrict or prohibit tokenized securities in your jurisdiction.
Liquidation: Forced selling of collateral when a DeFi loan's health factor falls below threshold. Triggered by price drops in the collateral asset.
Health Factor: A DeFi metric indicating how close a collateralized position is to liquidation. Below 1.0 = liquidation triggered.