EQX Labs plans to tokenize U.S. stocks, and ETF will introduce Hyperliquid, supporting 24/7 trading, seven days a week. However, these tools, which are backed by stocks, do not grant direct ownership of the stocks. The plan was announced on October 14, 2026, and covers 11 markets on the platform's native spot order book, excluding U.S. citizens.
Key Points
- The products planned to be launched include SPY, QQQ, Apple, NVIDIA, and Tesla.
- These tokens are offshore debt instruments backed by stocks.
- Ordinary holders usually sell the tokens rather than redeeming them for stocks.
According to The Defiant, these markets will pair tokens with USDC on HyperCore. Files from EQX indicate that the structure involves broker-held underlying stocks, with approved institutions responsible for creation and redemption, while other eligible users trade on the secondary market.
How will the tokenized US stocks of EQX be traded?
These 11 planned markets will use the HIP-1 token standard of Hyperliquid. Stock-backed spot tokens will be initially issued on HyperCore. The first batch of products includes two ETF tokens, namely SPY and QQQ, as well as individual stocks such as Apple, NVIDIA, and Tesla.
This structure is different from other stock products in the ecosystem. In March, Felix launched Ondo supported stocks and ETF on HyperEVM, utilizing Ondo to tokenize securities on Ethereum and bridge them into the ecosystem. In May, Trade.xyz introduced a synthetic perpetual market for SpaceX IPO.
The difference with EQX lies in its support mechanism: these tokens offer rights linked to off-exchange stock holdings, rather than a perpetual exposure to stocks.
Stock Support and Offshore Issuers
The tokenization of US stocks under EQX will legally be considered a debt obligation, rather than direct equity ownership. The issuer is EQX SPC Ltd, which is a segregated investment portfolio company based in the British Virgin Islands. These instruments are classified as limited recourse notes, with each note corresponding to an independent investment portfolio of its own code.
A Cayman Islands purpose trust owns the issuer. EQX Labs provides the technology, rather than issuing these securities.
EQX indicates that brokerage accounts opened in the name of the issuer will hold the underlying stocks. These accounts will be set up under Alpaca Securities LLC, StoneX Financial Ltd, and Clear Street LLC.
Qualifications, Redemption, and Shareholder Participation
According to the admission rules of EQX, US citizens are not eligible to participate, nor are those located within the United States. This issuance also excludes residents of the British Virgin Islands and anyone local to them, individuals subject to sanctions, as well as those situated in jurisdictions that are under comprehensive sanctions by the United States, the United Nations, the United Kingdom, or the European Union.
Only authorized participants—i.e., institutions that have been approved to create and redeem tokens—can typically exchange tokens for stocks. Other holders generally exit by selling them on the secondary market. EQX indicates that the creation and redemption mechanism helps to keep the token price close to the value of the underlying stock during trading hours in the U.S. market.
Dividends will be reinvested in the same stock after deducting the applicable withholding tax. Holders can submit their voting instructions by using wallet signatures.
Fees and Support Disclosure
EQX does not charge any fees to the issuer for token creation, redemption, or holding. Its revenue will come from a portion of the Hyperliquid transaction fees, while users will still need to pay the standard spot transaction fees.
At launch, EQX plans to release broker statements and dashboards that distinguish between settled support stocks and those that will be delivered on the next US working day.
This article was generated with the assistance of artificial intelligence and has been reviewed by an editorial team.
