DeFi Development Corp tokenizes its CHAD preferred stock as CHADx across 10 blockchains

The Nasdaq-listed company has put its preferred stock, CHAD, on the blockchain through a new tokenized version called CHADx. Each CHADx token represents one CHAD share on a 1:1 basis, with the underlying shares held in custody. The tokens are issued by xStocks entities and are designed to automatically reflect CHAD's daily dividends without requiring claims or routing through brokerage accounts.

CHADx operates under SEC Regulation S, covering securities offerings made outside the United States, and relies on a prospectus approved in the European Union. The product supports minting and redemption using stablecoins once investors clear KYC checks, allowing verified users to swap outside traditional brokerage rails.

Dividend Details

CHAD's dividends are cumulative and payable daily when declared. Effective November 2, 2026, the annual dividend rate rose to 14%, which on the stated amount of $10 per share works out to $1.40 per share each year. If a payment is skipped, it accumulates and must be settled before common shareholders receive any distributions.

Market Strategy

CEO Joseph Onorati framed the tokenization as a natural next step in the company's capital markets strategy. DeFi Development Corp launched CHAD through a public offering in September 2026, selling 1.375 million shares at $8 each to raise approximately $11 million. By mid-September, CHAD's notional value had reached approximately $15.81 million.

Investor Considerations

Tokenizing CHAD expands access beyond traditional brokerage channels to a wider investor base. However, the structure requires careful reading - CHADx offers dividend exposure and onchain portability but not ownership or voting rights. Investors must also consider counterparty exposure, as tokens depend on xStocks entities properly managing custody-held shares.