Market Cap of SK hynix ADR-Linked Tokens Tops 100 Billion Won [Crypto Briefing]

[Financial News] The combined market capitalization of four tokenized products based on SK hynix's American Depositary Receipt (ADR) has surpassed 100 billion won, according to CoinMarketCap. It comes just 12 days after SK hynix ADR began trading on Nasdaq in the United States. However, industry consensus is that investors in these tokens should note they do not directly hold SK hynix ADR, but rather have contractual rights with the issuer.
As of 2 p.m. on the 22nd, the combined market cap of SK hynix ADR-linked tokens stood at $70.09 million, or about 103.8 billion won, according to CoinMarketCap.
By token, SKHYx issued by XStocks accounted for $53.29 million, or about 76 percent of the total. SKHYB, distributed through Binance's tokenized stock service BStocks, followed with $13.86 million. SKHY and SKHYon, issued by Backpack and Ondo Finance, respectively, recorded $1.76 million and $1.18 million.
SK hynix ADR was listed on Nasdaq on the 10th. An ADR is a certificate that allows shares of foreign companies to be traded in U.S. markets in dollars. Shortly after the listing, XStocks, Backpack and Ondo Finance launched tokens linked to the ADR price, and Binance also added an SK hynix token to BStocks.
The issuers say the tokens are created using the ADR as the underlying asset or collateral. Binance and XStocks promote a structure backed 1:1 by the underlying security. Backpack said it designed its token so that one token can be redeemed for one actual ADR share.
However, token holders do not have the same legal status as investors who directly own ADRs. Under the contracts set by the issuer and intermediaries, investors receive gains from price movements, dividend-equivalent amounts and redemption rights. It is similar to buying a 'digital exchange voucher' linked to the value of shares held by the issuer instead of the actual stock.
Accordingly, investors should check not only for a decline in the ADR price, but also the credit and operational risks of the issuer and custodian, whether collateral assets are actually held, and the possibility of asset segregation and redemption if the issuer goes bankrupt. The handling of corporate actions such as dividends, voting rights and stock splits may also differ by product.
iM Securities classified these stock-linked tokens as 'wrapper-style tokens' that are largely contractual claims against the issuer. By contrast, the tokenization service being pursued by The Depository Trust & Clearing Corporation (DTCC) aims to extend record-keeping and transfer methods to blockchain while preserving the legal and economic rights of existing securities held at the central depository, including ownership and dividends.
An industry source explained, "Stock-linked tokens can be traded 24 hours a day, even after the stock market closes," adding, "However, when the U.S. market is closed, trading in the underlying ADR is suspended, so token prices may be set above or below the ADR price."

[email protected] Kim Mi-hee Reporter