A documented in-kind example: xStocks xPort
The official xStocks xPort documentation describes direct conversion between securities and xStocks without first selling for cash. A participant must complete KYC/AML onboarding with both the issuer and Alpaca, which facilitates brokerage custody and share transfers.
The documentation positions xPort for market makers, trading firms, institutions, brokerages and other approved clients needing on-demand movement between equity and tokenized form. Its existence does not mean every retail user or Alpaca account has access.
Shares to tokens: the operating sequence
- Enter only through official issuer and broker sites; ignore private-message conversion offers.
- Confirm genuine residency eligibility and complete onboarding with both parties.
- Prepare a compatible self-custody wallet, verify the network and allowlist its address.
- Hold the supported share and required quantity in the eligible Alpaca brokerage account.
- In the official interface, select tokenization/xPort and check ticker, quantity, destination network and allowlisted wallet.
- Submit the request. Alpaca sends the issuance request and moves the shares to the designated custody account.
- After validation and settlement, the issuer mints the corresponding xStocks to the allowlisted wallet.
- Verify the official contract, quantity and transaction hash in the relevant block explorer; do not trust wallet names or logos alone.
The documentation lists 24/5 availability aligned with US equity hours and currently lists the applicable fee as zero. Both may change, so inspect the live confirmation screen.
Tokens back to shares: redemption
- Open the official redemption flow and confirm asset, network, minimum, source wallet and receiving Alpaca account.
- Send only from the allowlisted wallet to the deposit address displayed in the authenticated flow; use a small test where supported.
- The issuer processes the tokens and notifies Alpaca.
- Alpaca credits the corresponding shares to the eligible brokerage account after completion.
You do not send the token to NASDAQ, and it cannot automatically enter an arbitrary traditional broker. Any broker-to-broker path must be explicitly supported.
If your broker does not support xPort
| Route | What actually happens | Trade-off |
|---|---|---|
| Sell shares, then buy a token product | The brokerage position ends and a separate product is purchased | Not a transfer; taxes, spreads and market-gap risk may apply |
| Buy through a supported token venue | You hold the issuer's product from the start | Check rights, issuer, jurisdiction, contract and redemption eligibility |
| Keep the conventional shares | The broker remains the recordkeeper | Often simpler if no onchain utility is needed |
Never do this
- Never give a “tokenization agent” your broker password, verification code or seed phrase.
- Never send tokens to a supposed burn address copied from an ad or chat.
- Do not identify an xStock by ticker alone; verify issuer, contract and network.
- Do not falsify residency or identity to bypass restrictions; redemption and account access may fail.
Related: Robinhood Stock Tokens versus xStocks and the issuer-side tokenization process.