The concept of tokenized real-world assets (RWAs) is surging in the crypto space, and few projects have drawn as much attention recently as xStocks. As a key player enabling tokenized U.S. equities on-chain, xStocks has formed strategic integrations with major platforms like Kraken, Bybit, and Jupiter — bringing traditional finance one step closer to decentralized ecosystems.
But behind the sleek narrative of crypto-stock convergence, there’s a more complex backstory. The developer powering xStocks, Backed, is no fresh-faced startup. Its founders once led DAOstack, a once-promising decentralized governance project that ultimately collapsed — leaving investors with worthless tokens and a cautionary tale about execution risk in Web3.
Now, they’re back — rebranded, refocused, and riding the momentum of one of 2025’s hottest trends: tokenized equities.
👉 Discover how real-world assets are reshaping crypto investing — and what to watch for next.
From DAOstack to Backed: A Team’s Second Act
At the heart of Backed are three Israeli co-founders: Adam Levi, Yehonatan Goldman, and Roberto Klein — all of whom were central figures in the now-defunct DAOstack project.
Launched in 2017 amid growing skepticism around DAOs following high-profile failures like The DAO hack, DAOstack aimed to build a decentralized operating system for organizations, funds, and markets. Despite the challenging environment, it managed to raise $30 million across three funding rounds by 2018, signaling early confidence from investors.
Yet, after successfully completing its token sale for the GEN token, the team made a critical misstep: they never listed the token on any exchange, not even smaller or regional ones. Over time, GEN became illiquid — effectively "going to zero" in value.
As crypto influencer 0x Todd noted sharply:
“Even second- or third-tier exchanges often list tokens proactively. For DAOstack to miss even that kind of forced listing shows serious operational failure.”
By 2020, activity around the project had slowed dramatically. By 2022, with funding depleted, DAOstack Limited officially shut down.
Fast forward to today — the same team is back under the name Backed, this time focusing on tokenizing U.S. stocks through its xStocks protocol. They’ve swapped decentralized governance for regulated financial innovation, positioning themselves at the forefront of the RWA (real-world asset) boom.
But can a team with a history of failed delivery regain trust in an industry where credibility is everything?
Team Structure: Compliance Meets Tech — But With Gaps
According to LinkedIn data, Backed operates with a team size between 11 and 50 employees. A closer look reveals a clear strategic focus:
🔐 Strong Emphasis on Legal & Compliance
A significant portion of the team consists of professionals with backgrounds in anti-money laundering (AML) and financial regulation. This makes sense given the sensitive nature of tokenizing securities — an area tightly controlled by regulators like the SEC.
Having robust compliance infrastructure isn’t just good practice; it’s essential for navigating the legal gray zones of blockchain-based equities.
💻 Technical Backbone from 21 Shares
On the engineering side, key personnel come from 21 Shares, one of Europe’s leading crypto ETP issuers. Notable hires include:
- Yotam Katznelson, current CTO and COO of Backed
- Łukasz Romanowski, Senior Software Engineer
Their experience in regulated digital asset products brings much-needed technical rigor to Backed’s platform development.
However, not all roles align seamlessly with industry expectations.
🎵 An Unusual Hire: Music Scholar Leads Growth
David Henderson, Head of Growth at Backed, holds a Master’s degree in Music from the University of Aberdeen. His professional background lies primarily in academic communications and strategic assessment within trust-related frameworks — but with no direct experience in crypto or financial services.
His appointment raises eyebrows in a sector where growth leaders typically have deep roots in fintech marketing, community building, or performance analytics.
While diverse thinking can drive innovation, leadership roles in high-stakes financial tech demand proven domain expertise — especially when handling investor funds and regulatory scrutiny.
The Founders: Academia, Art, and Angel Investing
Each co-founder brings a distinct profile — spanning science, art, and finance — though their shared Web3 journey remains narrowly focused on just two ventures: DAOstack and Backed.
Adam Levi – The Physicist Turned Spokesperson
With a PhD in theoretical physics from the Technion – Israel Institute of Technology, Adam published multiple papers on black holes and quantum phenomena before transitioning into blockchain. He served as an academic officer in the Israeli Defense Forces and later worked as a teaching assistant.
Today, he acts as Backed’s public face — frequently appearing in interviews and industry events.
Yehonatan Goldman – The Self-Taught Innovator
Describing himself as a “multidisciplinary maker,” Yehonatan holds a master’s in material cultural heritage preservation. He founded Talish Art Gallery and worked as a freelance project manager before joining DAOstack as Chief Operating Officer in 2017.
His shift from arts management to blockchain operations reflects a broader trend of interdisciplinary talent entering crypto — but also highlights potential gaps in financial domain knowledge.
Roberto Klein – The Investor With Regulatory Focus
Roberto graduated from Tel Aviv University and earned an MBA from Switzerland’s IMD Business School. With early experience in optoelectronics and investment analysis, he pivoted to angel investing in 2009 — focusing on renewable energy and fintech.
At DAOstack, he oversaw legal and regulatory affairs — a role he likely continues shaping at Backed.
👉 See how emerging fintech platforms are bridging traditional markets with blockchain innovation.
Can Past Failures Be Overcome?
History doesn’t have to repeat itself — but patterns matter.
Backed is now operating in a far more favorable climate than DAOstack did. The idea of tokenized real-world assets is gaining traction across Wall Street and Silicon Valley alike. Firms like BlackRock and Franklin Templeton have launched blockchain-based funds, lending legitimacy to the RWA narrative.
Yet early user feedback on xStocks points to ongoing concerns:
- Limited liquidity for certain stock tokens
- Relatively high transaction fees
- Lack of transparent third-party audits
These aren’t minor issues. In decentralized finance (DeFi), trust is earned through transparency and verifiable security — not just compelling stories.
And while Backed emphasizes compliance, the absence of full public audits leaves room for doubt.
Frequently Asked Questions (FAQ)
Q: What is xStocks?
A: xStocks is a protocol developed by Backed that enables the tokenization of U.S. equities on blockchain networks. These tokenized stocks allow users to gain exposure to companies like Apple or Tesla directly within DeFi environments.
Q: Is xStocks regulated?
A: While Backed employs legal and AML experts and claims to follow regulatory guidelines, xStocks itself operates in a gray area. Tokenized securities may face scrutiny from financial authorities depending on jurisdiction and use case.
Q: What happened to DAOstack?
A: DAOstack was a decentralized governance platform launched in 2017. Despite raising $30 million, it failed to list its GEN token on exchanges, leading to illiquidity. The project became inactive by 2020 and was officially shut down in 2022 due to lack of funding.
Q: Who uses xStocks?
A: Platforms like Kraken, Bybit, and Jupiter have integrated xStocks to offer synthetic or tokenized stock exposure to their users — particularly those seeking crypto-native ways to access traditional markets.
Q: Are tokenized stocks safe?
A: Safety depends on custody models, audit transparency, and regulatory compliance. Users should research whether assets are fully backed, how price feeds are secured, and if smart contracts have been audited by reputable firms.
Q: Can I earn dividends from tokenized stocks?
A: Some protocols aim to replicate dividend distributions through rebalancing or yield mechanisms. However, true dividend delivery depends on the underlying structure — many current implementations do not provide actual corporate dividends.
Final Thoughts: Narrative vs. Substance
Backed has undeniably mastered the art of timing. By re-entering the market under the banner of tokenized equities, they’ve tapped into one of 2025’s most powerful narratives in crypto: bridging traditional finance with blockchain efficiency.
Their partnerships with major exchanges lend credibility — but partnerships alone don’t guarantee long-term success.
The shadow of DAOstack lingers. Investors and users alike will be watching closely:
Can this team deliver real utility?
Will they prioritize transparency over hype?
And most importantly — will they avoid repeating past mistakes?
In crypto, second chances are rare. But when granted, they must be earned — not assumed.
Keywords integrated: tokenized stocks, real-world assets (RWA), Backed Finance, xStocks, crypto-stock convergence, decentralized finance (DeFi), asset tokenization, blockchain securities