Deutsche Borse DAX 40 xStocks: Who Pays for the Tokenization Premium?
Deutsche Börse Group announced this week that Payward’s xStocks are now available on 360X for all 40 DAX constituents. The launch follows Deutsche Börse’s April announcement of a $200 million investment for a 1.5% stake in Payward, Kraken’s parent company.
The launch makes Deutsche Borse the first major European exchange group to have live tokenized equities products. It gives us a concrete product with which to assess the commercial case for tokenized equities.
Take SAP. A fund can buy the ordinary share through its existing broker. On 360X, it can trade SAPx, a tracker certificate issued by Backed Assets (JE) Limited, a Payward subsidiary, and backed by SAP shares. The two instruments offer exposure to the same stock. But that's where their simiarity ends.
When you buy SAPx, what do you own, and who owes you what?
Now put €100,000 through each route. The tokenized trade introduces extra layers of intermediation.
Where does the extra cost enter, and what would make it worth paying for a fund that already has access to SAP?
Meanwhile, Binance reports that its own tokenized stocks, bStocks, reached $1 billion in assets under management 125 days after launch. That is evidence of demand from customers. But do the same growth drivers apply in the 360X case?
In this Strategic Edge analysis, we examine three questions.
What exactly does SAPx give investors? We trace the certificate through its regulatory framework, issuer and custody arrangements, including what the buyer can claim if the issuer defaults.
Who pays the tokenization premium? We follow an illustrative €100,000 order through both routes to show where costs arise, who can earn revenue and what an institution would need to gain.
Who is already buying tokenized stocks, and what do they value? We examine what Binance’s trading activity reveals about demand and which of those adoption drivers could carry over to 360X and Payward.
Strategic Edge member analysis begins below.
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