DeFi Development Corp. has launched a tokenized representation of its Nasdaq-listed Variable Rate Series C Perpetual Preferred Stock on Solana, connecting a traditional preferred-security product with blockchain-based settlement and distribution. The tokenized product, called CHADx, was introduced in partnership with xStocks, according to Investing.com.

How CHADx works

CHADx is designed as a 1:1 tokenized representation of CHAD, backed by shares held in custody. It is now available on Solana and nine other blockchains, although availability depends on the platform and the user’s jurisdiction.

The token is offered by xStocks and is not issued by DeFi Development Corp. The structure also does not give CHADx holders ownership of the underlying CHAD shares or the shareholder rights associated with those shares.

That distinction separates the blockchain product from the company’s original Nasdaq-listed security. CHAD remains a preferred stock instrument, while CHADx represents an on-chain claim designed to track that instrument’s economic exposure under the terms set by its issuer and distribution partners.

Dividend structure and availability

Effective November 2, CHAD’s annual dividend rate was set at 14.00%, equivalent to $1.40 per share based on a stated amount of $10.00. The dividends are cumulative and payable each business day when declared by DeFi Development’s board.

The treatment differs depending on whether an investor holds CHAD or CHADx:

• CHAD holders receive cash dividends in a brokerage account when dividends are declared and paid.
• CHADx holders are designed to see daily dividends reflected through an increase in their token balance each trading day.
• The dividend rate may change over time, and dividends are not guaranteed.

The tokenized structure therefore offers a blockchain-based way to represent the preferred stock’s economics, but it does not eliminate the legal, platform, or jurisdictional conditions attached to the product.

What This Means

The launch gives Solana another example of tokenized traditional finance moving beyond stablecoins and treasury products into publicly traded preferred securities. For DeFi Development, the release also aligns with its treasury policy, which allocates principal holdings to SOL, alongside its operation of Solana validator infrastructure and participation in decentralized finance opportunities on the network.

For the broader market, CHADx could make preferred-stock exposure more accessible across supported crypto platforms while preserving a distinction between token ownership and equity ownership. Its adoption will likely depend on platform availability, regulatory treatment, liquidity, and investor understanding of the fact that the token does not confer shareholder rights. The stated 14.00% rate may attract attention, but its variability and non-guaranteed status remain important considerations.