The rise of xStocks has taken the cryptocurrency world by storm, emerging as a key player in the rapidly growing trend of tokenized real-world assets. With partnerships now live on major platforms like Kraken, Bybit, and Jupiter, the project has captured significant attention. But behind this momentum lies Backed Finance, the developer driving xStocks—and a team with a controversial past.
This article explores the origins, team structure, and evolving narrative of Backed, shedding light on their journey from a failed DAO project to frontrunners in the tokenized equities space.
From DAOstack to xStocks: A Team’s Second Chance in Crypto
At first glance, Backed appears to be riding the wave of innovation in on-chain asset tokenization. But a closer look reveals a deeper story—one rooted in redemption.
Backed Finance was co-founded by Adam Levi, Yehonatan Goldman, and Roberto Klein, all of whom were core contributors to DAOstack, a decentralized governance platform launched in 2017 during the early days of the DAO movement. At the time, DAOs were still reeling from high-profile failures, yet DAOstack managed to raise $30 million across three funding rounds by 2018—an impressive feat given the skepticism surrounding decentralized organizations.
Despite strong fundraising success, DAOstack ultimately failed to deliver long-term value. Its native token, GEN, was never listed on any major or even minor exchanges. Over time, it lost all liquidity and effectively “went to zero.” As crypto commentator 0x Todd noted:
“Even second- or third-tier exchanges often list tokens regardless of merit. The fact that DAOstack didn’t get picked up even there speaks volumes.”
By 2020, activity around DAOstack had slowed dramatically. By 2022, the company officially shut down due to depleted funds.
Now, years later, the same team is back—with a new name, a new product, and a new narrative centered around tokenized stocks. Is this genuine evolution? Or simply rebranding?
👉 Discover how tokenized assets are reshaping finance—explore the future of on-chain investing.
Team Structure: Compliance Meets Tech—But With Some Odd Fits
According to LinkedIn data, Backed operates with a team size between 11 and 50 employees. The organizational design reflects a strategic focus on legitimacy and regulatory alignment—critical for any project dealing with financial instruments.
Dual Pillars: Legal & Technical Expertise
Two clear pillars define Backed’s core team:
- Compliance and Legal Professionals: A significant portion of the team comes from legal and anti-money laundering (AML) backgrounds. This makes sense given the sensitive nature of tokenizing regulated securities like U.S. stocks.
Experienced Crypto Engineers: Several key technical roles are filled by former employees of 21 Shares, a well-known issuer of crypto ETPs. Notably:
- Yotam Katznelson, now CTO and COO of Backed, previously held engineering leadership roles at 21 Shares.
- Łukasz Romanowski, Senior Software Engineer, brings additional blockchain infrastructure experience.
This blend of regulatory foresight and technical execution positions Backed as more credible than many fly-by-night projects in the DeFi space.
An Unconventional Growth Lead
However, not all hires align neatly with industry expectations. David Henderson, currently serving as Head of Growth, holds a Master’s degree in Music from the University of Aberdeen and spent much of his career in academic communications. His only tangential link to finance was a six-month role in “strategic digital assessment” related to trusts.
While diverse thinking can benefit startups, placing someone without direct fintech or crypto experience at the helm of growth raises questions—especially when navigating complex markets governed by strict financial regulations.
The Founders: Academia, Art, and Angel Investing
Backed’s founding trio presents an eclectic mix of backgrounds—all Israeli nationals but with vastly different professional paths.
Adam Levi – The Academic Face
With a Ph.D. in Theoretical Physics from the Technion – Israel Institute of Technology, Adam published research on black holes and quantum effects before transitioning into Web3. He also served as an academic officer in the Israeli Defense Forces.
Today, he acts as the public face of Backed, frequently appearing in interviews and representing the company at events—an effective communicator bridging technical depth and market outreach.
Yehonatan Goldman – The Creative Operator
Yehonatan describes himself as a “self-taught multidisciplinary maker” with a master’s in 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 artistic background contrasts sharply with typical tech founders but may contribute to innovative thinking in product design and user experience.
Roberto Klein – The Financial Strategist
Roberto holds an MBA from Switzerland’s prestigious IMD Business School. With early experience in engineering and investment analysis, he shifted to angel investing in 2009, focusing on renewable energy and fintech ventures.
At both DAOstack and Backed, he oversees legal and regulatory strategy—making him instrumental in navigating compliance challenges tied to asset tokenization.
While their Web3 track record remains limited to just two major projects (DAOstack and Backed), the founders have clearly adapted their messaging to align with current market trends.
Riding the Tokenized Asset Wave
The concept of tokenizing traditional financial assets—especially U.S. equities—is gaining traction across crypto ecosystems. Projects like xStocks allow users to gain exposure to companies like Apple or Tesla through blockchain-based tokens, enabling 24/7 trading, fractional ownership, and integration with DeFi protocols.
Backed’s timing couldn’t be better. With rising institutional interest and regulatory frameworks slowly taking shape (e.g., MiCA in Europe), the demand for compliant RWA (real-world asset) solutions is growing fast.
Yet early adopters have raised concerns:
- High transaction fees
- Liquidity constraints
- Lack of transparent audits
These issues echo past criticisms of DAOstack—where ambition outpaced delivery.
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Frequently Asked Questions (FAQ)
Q: What is xStocks?
A: xStocks is a protocol developed by Backed Finance that enables the tokenization of U.S. equities on blockchain networks, allowing crypto users to trade stock-backed tokens on decentralized platforms.
Q: Is Backed Finance regulated?
A: While Backed emphasizes compliance and employs legal experts, it has not publicly disclosed full licensing details or regulatory approvals. Users should conduct due diligence before engaging with its products.
Q: Why is DAOstack relevant to Backed?
A: All three co-founders were key figures in DAOstack, which failed after raising $30M and failing to list its token. This history raises questions about execution capability and long-term sustainability.
Q: Can I redeem xStocks tokens for actual shares?
A: Currently, redemption mechanisms are not transparently documented. Most tokenized stock platforms do not offer direct share ownership but instead provide synthetic exposure via custodial arrangements.
Q: How does Backed differ from other RWA projects?
A: Backed focuses specifically on U.S. equities and partners with established crypto exchanges. Its emphasis on legal compliance differentiates it from less-regulated alternatives—but verification remains limited.
Q: Are there risks investing in tokenized stocks?
A: Yes. Risks include counterparty risk (reliance on custodians), regulatory uncertainty, smart contract vulnerabilities, and potential lack of liquidity.
Final Thoughts: Innovation or Rebranding?
Backed Finance stands at a pivotal moment. On one hand, they’re leveraging real expertise in compliance and engineering to enter a high-potential niche: blockchain-based stock tokens. On the other, their history with DAOstack—a project that raised millions but delivered nothing—casts a long shadow.
Success this time will depend not on hype or partnerships alone, but on transparency, sustainability, and actual utility. Can they overcome past failures and earn trust in an increasingly cautious market?
Only time will tell.