In this article, youâll see what self-custody really means when you hold xStocks in a TON wallet instead of keeping everything in a broker app. Weâll compare the old âbroker controls the accountâ model with the new âwallet controls the assetâ setup, show what you actually gain, what you take on as responsibility, and give a short checklist for holding xStocks safely on-chain.
| â ď¸ Important: Eligibility of xStocks depends on the issuerâs and STON.fiâs terms and on your local rules. |
What self-custody means in the xStocks context
People throw âself-custodyâ around a lot, so letâs pin it down in this context.
With xStocks on STON.fi:
- The underlying exposure lives in the legacy financial system, inside regulated products managed by the issuer (Backed Finance) and backed by positions held with licensed custodians.
- The representation you use lives on TON as a jetton (the xStock) under your keys.
- No centralized platform in the middle can move that jetton without a transaction signed by your non-custodial wallet.
So:
- The issuer and custodians control the off-chain layer.
- You control the on-chain layer (the xStock jettons in your TON wallet).
- There is no separate broker account between you and the on-chain representation; the ledger for that representation is the TON blockchain itself.
Self-custody here means: if your non-custodial TON wallet is secure, a centralized platform cannot freeze, limit, or reallocate your on-chain xStocks. The issuer and custodian can still affect the economics of the underlying, but they canât reach into your wallet and shuffle jettons around.
The classic model: your assets in someone elseâs system
In the classic setup, the flow looks like this:
- You open an account at a brokerage platform.
- The platform (and its partners) maintain pooled positions and internal ledgers.
- You see balances in the app; the platform controls the infrastructure.
Reality in that model:
- Your access can be frozen for reviews, KYC refresh, sanctions, local policy, whatever the risk team decides.
- Movements in or out can be delayed, batched, or blocked.
- You operate within their business hours, their integrations, their support queue.
- You donât see the pipes; you see a web or mobile shell on top of a private database.
There are situations where this is useful â tax wrappers, pension products, local protection schemes. But youâre not really in control of the day-to-day handling of your positions.
The xStocks model: your wallet is the account
When you use xStocks via STON.fi, the picture changes.
- Your TON wallet is your only âaccountâ.
- xStocks are standard jettons living in that wallet.
- STON.fi is a non-custodial interface: it routes swaps via smart contracts but never becomes the legal or technical holder of your assets.
- The ledger of who holds what is the TON blockchain, not an internal broker database.
STON.fi does not issue, sell, or distribute xStocks and does not act as a broker, dealer, exchange, or adviser. It just provides non-custodial infrastructure on TON that third-party issuers and distributors can use to route swaps into xStocks.
Practically, that means:
- If you want to move xStocks to another wallet you own, you just send them. No withdrawal form, no waiting period.
- If you want to rebalance between xStocks and other tokens at strange hours, you do it. Legacy market hours donât block on-chain movements.
- If some interface disappears, as long as TON is alive and you have your keys, you can still interact with the jetton contracts through other apps.
You still depend on the issuer + custodian for the off-chain part, but you are not at the mercy of a broker in the middle.
Concrete benefits of self-custody for xStocks
Letâs make this less abstract.
- Censorship resistance at the wallet layer
A platform can decide to stop offering an interface. It cannot reach into your TON wallet and remove xStocks. You can always move them, as long as you control the keys and the chain is running. - No withdrawal games
A transfer is just a transaction on TON. If you want to exit a position to another wallet or another asset, the main constraints are network conditions and liquidity, not some internal ticket system. - Single environment for different risk types
You can keep your on-chain cash-like assets, your DeFi positions, and your xStocks all under one set of keys, instead of juggling a DeFi app + a broker app + another silo. That makes it easier to see and manage your overall risk. - 24/7 control
Even if traditional markets are closed, you can still move and re-arrange your xStocks on-chain. You may not get fresh price discovery in the underlying at 3 a.m. on Sunday, but no one is stopping you from moving your positions. - Composability
Because xStocks act as jettons, wherever the TON ecosystem supports them, you can plug them into other protocols (pools, strategies, structured products).
The flip side: responsibilities you canât outsource
Self-custody gives control and removes some kinds of platform risk. It also removes a support hotline. If you want the upside, you have to accept the duties.
Key ones:
- Key and seed security
- Your seed phrase (or private key) is the single point of control.
- Store it offline, in at least two secure locations.
- Never enter it on random websites, bots, or suspicious âsupportâ chats.
- If someone else gets it, they can move your xStocks, and there is no reversal button.
- Device hygiene
- Use wallets on devices you keep updated and reasonably clean.
- Avoid installing untrusted software on the same machine where you sign high-value transactions.
- For significant amounts, consider a hardware wallet or a more isolated setup.
- Transaction awareness
- Read what you are signing. If a dApp asks for broad access, understand why.
- Start with tiny test amounts when you first use a new interface to move xStocks.
- Be sceptical of âairdrop claimâ, âbonus rewardâ, or âurgent upgradeâ pop-ups that require signing something unusual.
- Contract verification
- Always make sure the xStock you hold or swap into is the correct jetton:
- cross-check ticker, name and contract address from official STON.fi / issuer docs,
- avoid interacting with lookalike tokens that appear in search or random links.
- Always make sure the xStock you hold or swap into is the correct jetton:
In the broker world, some of this is outsourced to a compliance department (with all the downsides). In self-custody, you are the department.
How self-custody risk differs from broker risk
Itâs useful to see the transaction clearly instead of romanticising one side.
| Aspect | Broker model | xStocks in self-custody |
| Who can freeze positions | Platform, intermediaries, sometimes regulators via the platform | No one at the wallet layer; issuer/custodian still control the off-chain backing |
| Access conditions | KYC, regional rules, changing terms of service | Access to your wallet and the chain; legal obligations are still your own problem |
| Failure modes | Account lock, withdrawal delays, platform insolvency, operational errors | Key theft or loss, wallet compromise, interacting with malicious contracts |
| Recovery options | Sometimes: support, legal routes, regulatory processes | If keys are gone or assets sent away, there is typically no recovery |
With xStocks you split risk:
- the economic link to traditional markets depends on the issuer, custodians, and the proof-of-reserves/oracle stack;
- the control over the on-chain representation depends on your key management and the TON contracts.
You choose which failure modes youâre more willing to live with.
Wrapping up
What self-custody does give you is simple: if youâre eligible to use xStocks and youâre willing to own your operational hygiene, you can keep traditional market exposure in the same self-custodied, composable environment as the rest of your DeFi setup instead of leaving it stranded inside yet another platform.
â ď¸ xStocks are not available to citizens or residents of the United States, any EU/EEA member state, the United Kingdom, Canada, Australia, Belgium, or any other jurisdiction where access to tokenized securities or assets is restricted or prohibited.
