apxUSD (APXUSD)

What apxUSD is

apxUSD is a dollar token backed by preferred shares rather than by cash or Treasury bills. Its documentation describes it as "Apyx's synthetic dollar backed by a diversified basket of low-volatility, variable-rate, preferred shares" issued by Digital Asset Treasuries, the publicly listed companies that hold digital assets on their balance sheets (source: Apyx documentation, read September 2026).

The collateral choice is what makes this asset unusual. Preferred equity in a listed company pays a scheduled dividend and sits above common stock in the capital structure. Apyx buys those shares off chain and converts the dividend stream into on-chain yield.

How it works

The Apyx documentation describes four parts working together: users depositing USDC, an off-chain treasury acquiring assets, an on-chain vault distributing yield, and the external stock markets where the collateral trades.

Capital moves outward first. The treasury "allocates incoming capital to acquire preferred assets ('Prefs') and short-term treasury bonds." Those assets are held in custody, with the documentation stating that regular third-party accounting attestations are provided.

Income moves back inward. The documentation states that "dividends are collected offchain, converted into apxUSD or alqUSD, and sent to the Apyx Onchain Vault," where the vault increases redemption value over time for holders of the yield-bearing tokens.

The protocol splits its tokens by function rather than blending them. apxUSD and alqUSD are the assets you mint and redeem. apyUSD and aptUSD are the assets that receive yield. apyUSD is described as accruing "rewards from dividends generated by the DAT preferred equity backing apxUSD" and as "the first Digital Credit yield asset." aptUSD is positioned for capital waiting to be deployed rather than sitting idle.

Access to the primary market is restricted. The documentation states that whitelisted institutional participants can mint at $1 and redeem at Redemption Value through primary markets or a request-for-quote system. Everyone else trades on secondary markets.

Redemption is settled in dollars on chain, not in the underlying shares. The documentation is explicit: "redemptions are settled in USDC; the protocol does not transfer preferred shares directly to redeeming participants."

Liquidity management is buffer-based rather than ratio-based. The documentation says "the protocol maintains a liquidity buffer sized against the largest historical TVL drawdowns observed in comparable stablecoins," with collateral "dynamically allocated across preferred shares" and rebalanced "subject to issuer concentration, liquidity requirements."

Supply and tokenomics

Supply expands and contracts with primary market activity. There is no cap and no issuance schedule; the outstanding amount reflects what whitelisted participants have minted.

The documentation does not publish a fixed overcollateralization percentage. It describes a dynamic allocation constrained by issuer concentration and liquidity requirements, with a buffer sized from historical drawdown data, rather than a single ratio. That figure is recorded here as not stated rather than estimated.

Separating the token that holds value from the token that receives yield is a deliberate design. apxUSD is meant to circulate as liquidity across on-chain and off-chain venues without carrying an accruing balance, while apyUSD carries the income.

History

Apyx describes itself as building the first dividend-backed stablecoin protocol, and its documentation frames the idea as a "digital credit thesis": that the preferred shares issued by digital asset treasury companies are an underused source of contractual, scheduled cash flow.

That thesis depends on a market that did not exist a few years ago. Digital Asset Treasuries are listed companies whose business is holding digital assets, and several have funded those holdings by issuing preferred stock paying monthly cash dividends. Apyx buys that paper.

The protocol's own token, APYX, has a staking design layered on the same logic. The documentation describes xAPYX and yAPYX, the latter as "the Dividend-Bearing Staking Vault for APYX holders," extending the dividend routing from the stablecoin to the governance asset.

Risks and what to watch

Issuer credit risk is the core exposure. A preferred dividend is scheduled, not guaranteed. A company under pressure can defer or suspend it, and preferred holders rank below creditors.

Concentration risk is real even with diversification rules. The universe of digital asset treasury companies issuing preferred stock is small, so a "diversified basket" within that universe is still concentrated in one business model.

Redemption risk sits in the gap between assets and settlement. Redemptions are paid in USDC, the collateral is equity trading on exchanges with opening hours, and the bridge between them is the liquidity buffer. A redemption wave larger than the buffer requires selling into whatever market is open.

Off-chain dependency is unusually deep. The treasury, the custody, the dividend collection and the attestations all happen off chain. A holder relies on the operator's execution and on third-party accountants rather than on anything verifiable on chain.

Access asymmetry matters. Only whitelisted institutions can mint at $1 or redeem at Redemption Value. A secondary holder has no primary market right, which is the same structural feature that lets other institutional stablecoins trade away from par during stress.

Frequently asked questions

What backs apxUSD?

Preferred shares issued by Digital Asset Treasuries, which are publicly listed companies holding digital assets, alongside short-term treasury bonds. Both are held off chain in custody.

Does apxUSD pay yield?

Not directly. Dividends from the collateral are collected off chain and routed to the Apyx Onchain Vault, where apyUSD and aptUSD holders receive them.

Who can mint and redeem apxUSD?

Whitelisted institutional participants, who mint at $1 and redeem at Redemption Value through primary markets or a request-for-quote process.

Can you redeem apxUSD for the underlying shares?

No. The documentation states redemptions are settled in USDC and that the protocol does not transfer preferred shares to redeeming participants.

Where can you buy apxUSD?

See where to buy apxUSD for the venues serving your jurisdiction, and Exchanges to compare fees and kyc requirements.