TSMC xStockPrice

(TSMX)

TSMx is a tracker certificate, issued as a token on selected blockchains. Its primary function is to accurately track the price of Taiwan Semiconductor Manufacturing Company Limited (TSM). This mechanism allows for digital representation of the stock's performance, making it accessible in a tokenized format. The design provides a direct link to the value fluctuations of the underlying traditional equity, reflecting its market movements without direct ownership of the stock itself.

TSMx aims to provide eligible investors with regulatory-compliant access to TSMC's stock price, leveraging the benefits inherent to blockchain technology. These benefits can include enhanced transferability, allowing for easier movement of the asset across supporting blockchain networks, and the potential for fractional ownership, enabling smaller investment increments. It bridges the gap between traditional financial markets and decentralized ledger technology, offering a new pathway to engage with established equities.

TSMx is available on multiple prominent blockchain networks. It can be found on Ethereum and other EVM-compatible chains, which are known for their broad ecosystem and smart contract capabilities. Additionally, it is also supported on Solana, utilizing its SPL token standard. This multi-chain availability aims to offer broader accessibility and flexibility for users across different blockchain environments, catering to diverse preferences and technical requirements.

The primary entity behind TSMx is Backed Assets (JE) Limited, which serves as the official issuer of the tracker certificate. Backed Finance AG plays a pivotal role as the tokenizer, responsible for the technical creation and management of the tokenized asset on the blockchain. Furthermore, the project involves various other essential parties, including brokers for distribution, custodians for asset safeguarding, and a dedicated security agent, all contributing to the regulated and operational framework of TSMx.

Currently, TSMx does not charge any management fees, which can be an attractive aspect for holders. However, the project states that a management fee of up to 0.25% per annum may be introduced in the future. Additionally, there are specific fees associated with the creation and destruction of tokens: issuance and redemption fees can amount to up to 0.50% of the investment's value. These fees cover the operational costs associated with minting and burning the tokenized assets.

The project explicitly states that it is 'designed to offer regulatory-compliant access' to the underlying stock. This implies that the entire structure, from its issuance as a tracker certificate to its operation on selected blockchains, has been formulated with regulatory adherence in mind. While the specific regulatory frameworks or licenses are not detailed in this text, the emphasis on compliance suggests that it operates within established legal guidelines governing securities and digital assets, aiming to provide a secure and legally sound investment channel.