A direct issuance client passes KYC/AML and wallet screening and submits at least USD 5,000. The current Final Terms say the issuer offers products itself exclusively to Qualified Professional Investors and may reject a request. For accepted issuance, the issuer buys the corresponding NVIDIA shares and activates pre-created ledger securities. The product has an issue-volume ceiling of USD 500 million, while token supply expands or contracts through issuance, redemption, fees and rebasing rather than a fixed token cap.
NVIDIA shares are Standard Collateral held for this product. The Final Terms name Maerki Baumann, InCore Bank and Alpaca Securities as brokers and custodians, with Security Agent Services AG representing investors over the collateral. Backed’s proof endpoint reported 175,157 NVDA shares at Alpaca on 2026-09-05; that is a dated custody snapshot, not a permanent supply promise. Lending of the underlying shares is expressly allowed. If the structure fails, service-provider and realization costs rank ahead of holders, who receive pro-rata net proceeds and have no residual claim after distribution.
Redemption is an investor put settled in cash; other fiat or cryptocurrency is available only at issuer discretion, and physical NVIDIA shares are not a holder entitlement. Screening can delay or reject the order, settlement may take through the fifth business day, and pricing may deduct up to 0.5% with at least USD 100. A management fee is currently zero on the product page but the terms permit up to 0.25% annually. The xStocks FAQ says retail holders may apply for direct redemption after KYC and the USD 5,000 minimum, which is different from eligibility for the issuer’s primary offer.
NVIDIA paid USD 974 million in cash dividends during fiscal 2026. NVDAx does not pass those payments through as cash or direct shareholder dividends. Income received on collateral is reinvested net of tax and reflected by rebasing: the EVM contract changes effective balances, while Solana and TON use display multipliers. At the 2026-09-05 Ethereum snapshot, the multiplier was about 1.0009180758490996 and the periodic management-fee setting was zero.
The ledger remains administered. On Ethereum, the token and ProxyAdmin were controlled by the same 2-of-3 Safe; separate accounts handled minting, burning and multiplier updates, and pausing. The verified implementation lets the owner replace those roles, the sanctions-list pointer and other settings, while the proxy admin can replace implementation logic. Transfers were not paused at the snapshot, but the pauser can halt them and sanctions checks can block sender, receiver or spender. The present implementation has no holder-specific freeze method; the prospectus reserves possible future court- or regulator-directed recovery logic.
