BackedFi

BackedFi receives a C+ risk grade (38/100) from Hindenrank, where lower scores indicate lower risk. Moderate risk — well-structured regulated tokenized security issuer with Swiss legal backing and Chainlink integration, but centralized issuer risk and legal complexity are inherent to the model. BackedFi creates tokenized versions of stocks and ETFs (like Apple, Tesla, and S&P 500 ETFs) that can be traded on-chain. Each bToken is fully backed by the actual underlying asset held by regulated custodians under Swiss law. The protocol has expanded to Ethereum, Gnosis, Arbitrum, Base, and Solana, and integrates with Chainlink for price feeds.

The key risks identified for BackedFi are: (1) bTokens are debt claims on BackedFi under Swiss law, not direct ownership of the underlying stock — if BackedFi goes bankrupt, you would be an unsecured creditor (2) Redeeming bTokens for the actual underlying asset requires completing KYC/AML verification, which limits your exit options compared to fully permissionless DeFi tokens (3) During stock market closures or halts, the on-chain price oracle may not reflect current conditions, creating temporary mispricing risk

BackedFi scores 38/100 across eight risk dimensions: Mechanism Novelty: 3/15, Interaction Severity: 3/20, Oracle Surface: 5/10, Documentation Gaps: 2/10, Track Record: 9/15, Scale Exposure: 3/10, Regulatory Risk: 6/10, Vitality Risk: 7/10. The highest risk area is Vitality Risk at 7/10.

Among 72 rated RWA protocols on Hindenrank, BackedFi ranks #36 by safety (lowest risk score = safest). Its 38/100 risk score and C+ grade place it in the middle tier of RWA protocols.

BackedFi scores 9/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.