Technical Operation and Custody
Published 7/11/2026, 9:10:29 PM
Backpack Securities launched its 24/7 US equities market on July 10, 2026, utilizing the Solana blockchain to tokenize real-world assets (RWAs) for global investors [Source: https://www.globenewswire.com/news/release/2026/07/10/2912340/0/en/Backpack-Securities-Launches-First-24-7-US-Equities-Market.html]. By moving traditional stocks into a 24/7 on-chain environment, Backpack eliminates the 6.5-hour daily limit of the NYSE and Nasdaq, offering instant settlement and global accessibility across 150+ countries.
Technical Operation and Custody
Backpack operates a hybrid model that bridges regulated financial rails with decentralized infrastructure:
- 1:1 Backing: Every tokenized share (e.g., SPCX for SpaceX) is backed by a physical share of the underlying stock held in regulated US custody [Source: https://www.globenewswire.com/news/release/2026/07/10/2912340/0/en/Backpack-Securities-Launches-First-24-7-US-Equities-Market.html].
- Legal Framework: Under New York UCC Article 8, token holders maintain full legal ownership, including rights to cash dividends and corporate actions.
- On-Chain Settlement: Assets are tokenized on Solana, enabling instant settlement and peer-to-peer transfers, bypassing the traditional T+1 settlement cycle used by legacy brokers.
- Funding: Users can fund accounts using fiat or stablecoins (USDC), allowing for a unified portfolio of crypto and equities.
Comparison: Backpack vs. Traditional Markets
The primary competition lies in the removal of "market hours" and the integration of equities into the DeFi ecosystem.
| Feature | Backpack 24/7 Equities | Traditional Markets (NYSE/Nasdaq) |
|---|---|---|
| Trading Hours | 24/7/365 | ~6.5 hours/day (Mon-Fri) |
| Settlement | Instant (On-chain) | T+1 (Standard) |
| Accessibility | Global (150+ countries) | Primarily US-centric |
| Asset Utility | DeFi-compatible (Collateral/Lending) | Siloed in brokerage accounts |
| Funding | Fiat + Stablecoins (USDC) | Fiat only |
Backpack has claimed significant early traction, reporting that its SPCX (SpaceX) token captured 91.7% of all tokenized SpaceX volume across all blockchains within its first week [Note: not independently confirmed] [Source: https://www.globenewswire.com/news/release/2026/07/10/2912340/0/en/Backpack-Securities-Launches-First-24-7-US-Equities-Market.html].
Competitive Risks and Disadvantages
Despite the convenience of 24/7 access, the model faces several structural challenges compared to traditional hours:
- Liquidity and Spreads: Trading volume during weekends or overnight sessions is typically much lower than during regular NYSE hours. This can lead to wider bid-ask spreads and higher slippage for large orders.
- Price Discovery: Prices during off-hours may deviate from the "true" market price established during high-volume sessions. Significant price moves occurring on Sunday night may reverse sharply when the traditional US market opens at 9:30 AM ET.
- Regulatory Maturity: While Backpack operates with MiCA, MiFID II, and PSD2 (Payment Institution) licenses, the global regulatory landscape for tokenized securities is still evolving [Note: not independently confirmed].
- Market Maker Dependency: Continuous pricing relies on market makers providing quotes when the underlying reference exchanges are closed, which can be volatile during major geopolitical events.
While Backpack provides a significant advantage in terms of "always-on" availability and instant settlement, it currently serves as a specialized alternative for global and crypto-native investors rather than a full replacement for the deep liquidity found during traditional US market hours.