bNVDA Token Starts Trading on INX for International Users

On Tuesday, the INX platform introduced bNVDA, an Ethereum-based tokenized security backed one-to-one by Nvidia stock, for trading by eligible non-U.S. users. 

This new token is not officially affiliated with Nvidia but is designed to provide an innovative way for investors to engage with Nvidia’s stock through the blockchain.

According to the press release from INX and Backed, bNVDA offers several benefits compared to traditional stock investment. The tokenized security allows for trading outside regular stock market hours, providing more flexibility for investors. Additionally, users can fund their accounts and purchase bNVDA with crypto, making it more accessible for those already engaged in the digital asset space.

bNVDA tokens can also be used in decentralized finance applications or as loan collateral. This feature opens up new avenues for crypto traders looking to integrate traditional market assets into their portfolios.

Regulatory Considerations and Market Availability

Despite the growing interest in tokenized assets, bNVDA is not available for trading by U.S.-based traders due to the need for a clear regulatory framework for blockchain-based securities by the U.S. Securities and Exchange Commission (SEC). 

“The unclear regulatory landscape in the U.S. means that at present, Backed’s tokens are not offered or marketed in the U.S. However, Backed’s tokens are offered under an approved EU prospectus, are MiFID compliant, and convey ownership via blockchain ledgers,” stated David Henderson, Head of Marketing at Backed.

Backed’s tokenized securities, known as bTokens, are ERC-20 tokens deployed on the Ethereum network. These tokens are designed to offer the primary claim to the collateral value for users, providing a secure and regulated investment option outside traditional markets.

Market Performance and Future Prospects

Nvidia’s stock (ticker NVDA) has shown remarkable performance despite a recent decline of 2.3%, closing at $123.80 last Friday. The stock is up 156% year to date and nearly 3,000% over the past five years. This significant growth makes Nvidia a popular choice for investors, and the introduction of bNVDA on the INX platform aims to tap into this interest by offering a new, flexible way to invest in the company’s stock.

INX CEO Shy Data emphasized the importance of this launch, stating, 

“This partnership represents another milestone in our journey to enable the trading of real-world assets tokens. We are committed to advancing the accessibility and efficiency of the tokenized asset market, ushering in a new era of global finance.”

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