Backed Finance
Introduction
Backed is the brand name for two entities: Backed Finance AG, the parent company and tokenizer which is set up in Switzerland, and Backed Assets (JE) Limited established in Jersey, the issuer of securities. Backed specializes in transforming publicly tradable securities into blockchain-based tokens, creating fully compliant financial products. These tokens are both permissionless and fully backed by underlying assets like bonds, stocks, or ETFs, enabling a seamless bridge between traditional finance and the decentralized world.
Backed offers various tokenized financial products, and each product has its own separate account with a custodian bank that holds its specific assets. All products are treated equally, meaning each one has the first claim to the assets in its account. This setup ensures security and transparency for investors.
Fixed-Income Products
Equity Products
Aspect
Details
Registration
Tokens are issued under license by the Jersey Financial Services Commission (JFSC).
Issuer License
AML licensed and regulated in Jersey, with consent from the JFSC for the issuance of shares and securities. No additional licenses required in the jurisdiction of incorporation.
KYC/AML Procedure
Yes
Availability for US Investors
No. Products are sold only to qualified investors and licensed resellers.
Restricted Countries
Backed does not provide services to individuals or entities from Albania, Barbados, Belarus, Cambodia, Canada, Colombia, Haiti, Jamaica, Japan, Myanmar, Nicaragua, Pakistan, Russia, Ukraine, Vanuatu, Venezuela, Yemen, all African countries except Mauritius and South Africa, and other CIS countries. Individuals or entities from Iran, North Korea, Syria, and the United States of America are prohibited.
Creation of SPV
All Backed products are bankruptcy remote. bTokens are issued by an SPV, which is legally separated from Backed Finance AG, the tokenizer and the operator of the majority of employment activity.
Restrictions on transfer of tokens
The tokens are transferable, but the transfer must be conducted with appropriate disclosure and compliance measures as specified by the Jersey Financial Services Commission (JFSC).
Issuance & Redemption Process
Issuance Process:
Investor sends funds to Backed Assets (JE) Limited in the form of USDC, USDT, USD, EURC, EURe, or EUR.
Backed Finance deducts a 20 basis points (bps) issuance fee upfront from the investor’s funds.
Backed converts the funds into the native currency of the underlying security using brokers such as Circle and B2C2.
Backed uses the converted currency to purchase the underlying security from brokers or market makers such as Flowtraders.
Backed issues bTokens to the investor, representing their ownership of the underlying asset.
Redemption Process:
Investor sends bTokens back to Backed.
Backed sells the underlying security through a broker such as Flowtraders.
Backed deducts a 20 bps redemption fee upfront from the sale proceeds.
If the investor requests Fiat settlement, the funds are sent to their bank account. If the investor opts for stablecoin settlement, the fiat is converted back to stablecoins through brokers like Circle or B2C2 before being returned to the investor.
In EU, Debt is freely transfrable,
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