Backpack Securities is about to launch. As a US-based brokerage, Backpack Securities provides real stock trading, operating within a compliant US securities regulatory framework while offering a crypto-native product experience.
This article provides a complete explanation of Backpack Securities' product positioning, regulatory framework, core functions, and future plans.
1. More Compliant
1. Regulatory Framework and Settlement System
Backpack Securities operates with Backpack Securities Global Ltd as the global operating entity and a US-licensed entity as the brokerage body, following the New York State legal framework with DTCC as the settlement layer.
DTCC (The Depository Trust & Clearing Corporation) is the central settlement institution for the US securities market, responsible for the clearing and custody of the vast majority of US securities transactions. Every transaction on Backpack Securities is settled and registered through DTCC.
This means that the stocks held by users on Backpack Securities are real equities registered within the DTCC system.
2. Real Property Rights: Securities Entitlements under NY UCC Article 8
Stocks held by Backpack Securities users are protected as "security entitlements" under Article 8 of the US Uniform Commercial Code (UCC). Users enjoy the same nature of rights as users of all US-licensed brokerages and are bound by decades of mature legal practice in New York State.
This is particularly important: users do not hold contractual rights, derivative rights, or some kind of "wrapped asset," but a real property right established by UCC Article 8, the specific law governing private equity ownership within the US brokerage system.
Simply put, the legal rights enjoyed by Backpack Securities users over their stocks are of the same nature as those of users with accounts at major US brokerages like Charles Schwab or IBKR, protected by a mature US securities law system.
3. Real Equity: Dividends and Voting Rights
Backpack Securities provides real stock trading. Every share held by a user corresponds to real equity registered with DTCC, entitling them to dividend distribution rights and shareholder voting rights.
Users holding stocks can receive automatic settlement of quarterly dividends; users holding shares with voting rights can participate in shareholder votes for the corresponding companies.
2. More Professional
4. Fee Levels Consistent with Traditional Brokerages
Trading fees at Backpack Securities are benchmarked against major US brokerages like IBKR and Charles Schwab, remaining at the same level. Users can enjoy a crypto-native product experience without bearing additional transaction costs.
5. Direct Access to US Stock Liquidity
As a formal brokerage, Backpack Securities orders enter the US stock market liquidity pool directly, with execution prices reflecting real market prices.
6. RFQ System and Unified Margin
Backpack Securities introduces an RFQ (Request for Quote) system, allowing users to obtain quotes and confirm execution prices in advance when executing large trades or arbitrage strategies, reducing slippage costs for market orders.
The platform also supports unified margin—stocks, crypto spot, and perpetual contracts share a single margin account. For cross-asset traders, this means the same collateral can support multiple positions simultaneously, improving capital efficiency.
7. Seamless Switching Between On-Chain and Real Stocks
Backpack Securities bridges the boundary between traditional securities and on-chain assets.
Stocks held by users can be maintained in real stock form (registered with DTCC, enjoying equity and dividends) or converted with one click into Solana on-chain stock form for use in on-chain DeFi scenarios. The two forms can be switched freely without needing to sell and buy back.
For example, users can hold real stocks during US trading hours to enjoy equity and convert them to on-chain form after the market closes to participate in staking, lending, or liquidity scenarios within the Solana ecosystem.
8. 24/5 Trading
Backpack Securities supports 24/5 continuous trading, covering pre-market, regular hours, and after-hours sessions. Users in Asian and European time zones can complete trades during their regular working hours without adjusting their schedules.
9. Global Asset Coverage
At launch, Backpack Securities will support trading for thousands of real stocks, while also covering global assets such as Korean ETFs, European ETFs, and China-related ETFs.
The coverage of markets and asset classes will continue to expand in the future.
10. Simplified User Experience
- No need to open a separate US stock account: Existing Backpack users can use their current account for US stock trading without repeating KYC or opening a new account.
- Fractional share trading supported: Users can buy any proportion of shares by amount, no longer limited by the price threshold of a single share.
- Minimalist ordering process: The path from deposit to order completion is compressed to the shortest possible length.
11. Support for Transfers with Mainstream Brokerages
Backpack Securities supports transferring stock positions in from mainstream brokerages like IBKR and Charles Schwab, and also supports transferring out Backpack positions to other brokerages.
This capability provides convenience for users migrating assets between different platforms.
