Reference · Due Diligence

The Tokenization Backing Spectrum

The reflex for any "tokenized X": ask "What backs this token, who holds it, and what exactly can I redeem it for?" The same ticker can hide opposite risk. The token is the easy part — the structure is the product.

Fully-backed,
redeemable

SPV-wrapped
real shares

SPV economic
exposure

Synthetic
perpetual

← claim on a real asset · bet on the price →

The four structures

Structure	What you own	Key risk
Fully-backed, redeemable (e.g. SPCX)	A redeemable claim on a real share in regulated custody; redeem → underlying	Custodian solvency; redemption mechanics
SPV-wrapped real shares (e.g. Jarsy)	Economic rights via an SPV that holds real shares — no direct equity / voting	SPV governance; no direct claim on issuer
SPV economic exposure (e.g. Republic preSPAX)	A product tied to performance; explicitly not equity	Counterparty / issuer credit; structure opacity
Synthetic perpetual	Pure price exposure, no underlying at all	Total: leverage, funding, liquidation, no asset

Verifying "backed"

"Backed" is an off-chain claim the chain cannot self-verify — the oracle problem with money on it. Demand:

Proof-of-reserves / attestations linking on-chain supply to actually-custodied assets.
Named, regulated custodian (broker-dealer) — not "trust us".
A real redemption path — the difference between a claim and a bet.
Issuer authorization — was the underlying company's consent obtained? (Unauthorized tokenization is a live risk.)

Failure mode of record: pre-IPO "tokenized" allocations sold and never delivered because the provider couldn't source the underlying.