Strategy PP Variable xStock

Strategy PP Variable xStock (STRCx) is a tokenized security that represents on-chain exposure to Strategy Inc.’s Series A Variable Rate Perpetual Stretch Preferred Stock (STRC). The token is backed 1:1 by the underlying preferred shares held in custody and enables blockchain-based ownership, transfers, and integration with digital asset platforms while maintaining exposure to the stock’s dividend and price performance. ^[1]

Overview

Strategy PP Variable xStock (STRCx) is a tokenized security that provides on-chain economic exposure to Strategy Inc.'s Series A Variable Rate Perpetual Stretch Preferred Stock (NASDAQ: STRC). Issued by Backed Assets (JE) Limited under the xStocks framework, each STRCx token is backed 1:1 by the underlying preferred stock held in traditional custody. The token is available across multiple blockchain networks, including Ethereum and Solana, allowing investors to hold blockchain-based representations of the underlying security while maintaining exposure to its price movements and dividend distributions.

The underlying preferred stock pays monthly variable-rate dividends that reset based on market interest rates, subject to a minimum benchmark tied to one-month SOFR, and includes issuer redemption provisions. STRCx combines this traditional financial instrument with blockchain infrastructure by enabling digital ownership, on-chain transfers, and integration with decentralized finance applications. The token operates within a regulated issuance framework, with custody, brokerage, tokenization, and security services provided by regulated financial institutions, demonstrating how publicly traded preferred securities can be represented and managed on blockchain networks. ^{[2] [4]}

Features

STRCx features a 1:1 collateralized structure in which each token represents the economic value of a corresponding share of Strategy Inc.’s Series A Variable Rate Perpetual Stretch Preferred Stock held in custody. The token is issued under the xStocks framework and supports fractional ownership, allowing investors to hold portions of the underlying security. It is available across multiple blockchain networks, including Ethereum, Solana, Arbitrum, BNB Chain, TON, Mantle, Ink, Tron, X Layer, and other compatible networks, with cross-chain bridging that allows tokens to move between supported blockchains without changing the underlying asset.

The token supports two distinct market structures: a primary market for issuance and redemption, which requires AML/KYC verification and operates during traditional market hours, and a secondary market where tokens can be transferred and traded on supported exchanges and decentralized finance (DeFi) platforms at any time. Corporate actions, including dividend distributions, stock splits, and reverse splits, are reflected through an on-chain rebasing mechanism that automatically adjusts token balances to maintain exposure to the underlying security. Because STRCx is issued as a blockchain token, it is compatible with digital wallets, decentralized exchanges, lending protocols, and other blockchain-based financial applications while remaining backed by the underlying preferred shares held in regulated custody. ^{[3] [5]}