Tokenized equities

Tokenized equities 101

Think of tokenized equities as gaining exposure to the world's most popular stocks without the traditional barriers of legacy financial systems.

Let's break it down: Imagine you want exposure to Apple's stock price movements, but you don't want to deal with traditional brokers, lengthy settlement times, or geographic restrictions. With tokenized equities, you can establish that position directly onchain!

The key things that make tokenized equities special:

1. No brokers: Self-direct your trades on Jupiter’s decentralized exchange using the Moonshot front-end

2. No borders: Access global markets seamlessly from anywhere (where legally permitted, subject to eligibility requirements)

3. Fractional trading: Buy portions of expensive stocks rather than whole shares

4. Self-custodied: You maintain control of your assets in your own wallet

5. 1:1 backing: Each tokenized equity is fully backed by the underlying stock, though you do not own the underlying equity

Here's an example: Say Apple stock (AAPL) is trading at $180 per share.

• You want $500 worth of Apple exposure

• Instead of buying 2.77 shares through a traditional broker, you can buy $500 worth of AAPLx tokens

• Your AAPLx tokens move 1:1 with Apple's stock price

• If Apple goes up 10% to $198, your $500 position becomes worth $550

• You can trade, hold, or transfer your AAPLx tokens just like any other cryptocurrency

The beauty is in the simplicity: traditional stock exposure with all the benefits of decentralized finance.

Available assets

Trade tokenized versions of the world's most popular stocks:

Individual Stocks:

• QQQx (Invesco QQQ Trust)

• SPYx (SPDR S&P 500 ETF)

ETFs:

• AAPLx (Apple)

• TSLAx (Tesla)

• NVDAx (Nvidia)

• GOOGLx (Google)

• METAx (Meta)

• COINx (Coinbase)

• CRCLx (Circle)

• MSTRx (MicroStrategy)

How to trade tokenized equities

Getting Started:

1. Connect your wallet to Moonshot's interface

2. Navigate to the Tokenized Equities section

3. Select the asset you want to trade (e.g., AAPLx for Apple exposure)

4. Enter the amount you wish to trade

Click buy, and your trade is automatically executed on Jupiter’s decentralized protocol.

Placing orders:

When you place a trade through Moonshot's interface, you're trading directly on Jupiter Exchange. Your order executes at the best available price, and any unfilled portion is automatically canceled.

Managing your positions:

Your tokenized equity holdings appear in your connected wallet just like any other cryptocurrency. You can:

• Hold them for long-term exposure

• Trade them for other assets

• Transfer them to other wallets

• Use them in other DeFi protocols (where supported)

Key benefits:

True Ownership: Your tokenized equities live in your wallet. No counterparty risk from brokers or custodians.

24/7 Trading: Unlike traditional stock markets with limited hours, you can trade tokenized equities around the clock.

Global Reach: Access exposure to US stock markets from anywhere in the world (subject to local regulations and eligibility requirements).

DeFi Integration: Use your tokenized equities in the broader DeFi ecosystem where protocols support them.

Who can trade?

Due to regulatory requirements, tokenized equities trading on Moonshot isn't available everywhere. We follow applicable regulations, which means our platform is only open to eligible traders outside of the United States, Canada, UK, and certain other restricted regions.

Using VPNs or other methods to bypass geo-restrictions violates our Terms of Use, so please trade responsibly and in compliance with your local laws. For additional information, see our Tokenized Equities Agreement and Tokenized Equities Risk Disclosure Statement.

On the move?

Traveling to a Restricted Region

Planning a trip to a place where tokenized equities trading isn't available? No worries.

If you travel to a restricted region:

• Your account switches to view-only mode 👀

• You can still monitor your holdings, but can't execute new trades

• Your existing tokenized equities remain safely in your wallet

• Your funds stay under your control

Think of it like your trading taking a temporary vacation - everything's secure and waiting for you when you return to an eligible region.

Moving Permanently?

If you're relocating permanently to a restricted jurisdiction, please contact our support team at [email protected] for guidance on managing your account.

Understanding the technology

Jupiter Exchange Integration: All tokenized equities trades execute directly on Jupiter's decentralized protocol. Moonshot serves as a user-friendly interface that connects you to Jupiter Exchange - we don't hold, custody, or control your funds.

xStocks Technology: Tokenized equities are powered by Backed.Fi’s xStocks technology, ensuring each token is fully backed 1:1 by the underlying stock or ETF.

Important considerations

Ownership Rights: When you hold tokenized equities, you gain price exposure to the underlying stocks but do not receive traditional shareholder rights like ownership, voting privileges or direct dividend payments.

Technical Requirements: Trading tokenized equities requires basic familiarity with cryptocurrency wallets, blockchain transactions, and decentralized exchange protocols.

Regulatory Landscape: The regulatory environment for tokenized equities continues to evolve. Stay informed about developments that may affect trading availability in your jurisdiction.

Risk Management: As with any trading activity, only trade with funds you can afford to lose. The combination of cryptocurrency volatility and traditional market risks creates unique considerations for tokenized equity trading.

Risk Disclosure Statement: Please see our Tokenized Equities Risk Disclosure Statement for more information.

Getting support

For technical questions about trading tokenized equities or accessing your positions, our support team is available at [email protected].

For questions about Jupiter Exchange protocol operation or xStocks technology, please refer to Jupiter's official documentation and support channels.

Acknowledgement of risk & disclaimer

Risk: Tokenized equities trading involves substantial risk and may not be suitable for all investors. You may lose money trading tokenized equities, and you should carefully consider whether such trading aligns with your financial situation, risk tolerance, and investment objectives. Consult qualified financial, legal, and tax professionals regarding your specific circumstances. See our Risk Disclosure Statement for comprehensive risk information.

Content on this page is for educational and informational purposes only and does not constitute investment advice or a recommendation by Moonshot to buy, sell, or hold any tokenized equity, or to use Moonshot’s services. Moonshot operates solely as a technical interface to Jupiter Exchange and does not provide investment advisory services. Moonshot reserves the right to update this content at any time, and your continued use of our platform constitutes acceptance of any updates. If you do not understand or agree with our Terms or any updated content, you must immediately stop using Moonshot.