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What Is American Express Tokenized Stock (Ondo) (AXPon)? A Clear Breakdown of the Crypto Stock Token

Robert Colt Nov, 14 2025

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Compare AXPon (tokenized American Express stock) with traditional stock investments, including gas fees and dividend reinvestment.

AXPon isn’t a cryptocurrency in the traditional sense. It doesn’t mine, doesn’t have a supply cap, and isn’t built to replace money. Instead, it’s a blockchain token that mirrors the value of American Express stock (AXP) - and lets you use it inside DeFi apps like loans, yield farms, and automated trading bots. Think of it as a digital twin of real company stock, wrapped in Ethereum code.

How AXPon Works: Real Stock, On-Chain

Every AXPon token is backed 1:1 by actual American Express shares held by DriveWealth LLC, a U.S. broker-dealer regulated by FINRA and the SEC. When you buy AXPon, you’re not buying a prediction or a synthetic bet - you’re buying a claim on real shares locked in a regulated custody system. Ondo Finance, the company behind it, uses smart contracts to link those shares to the Ethereum blockchain.

Here’s the key difference from normal stock trading: you don’t need a brokerage account. You just need a wallet like MetaMask and access to a decentralized exchange like Uniswap or SushiSwap. Once you hold AXPon, you automatically get dividend reinvestments. If American Express pays a dividend, the system buys more AXPon tokens with that cash and adds them to your wallet. No manual reinvestment. No paperwork.

Why AXPon Exists: Bridging Wall Street and DeFi

Traditional stock investing is slow and locked inside banks. You can’t use your AXP shares as collateral for a crypto loan. You can’t plug them into a yield strategy that earns 8% APY. AXPon fixes that.

With AXPon, you can:

  • Use it as collateral on Aave to borrow USDC or DAI
  • Deposit it into Yearn.finance vaults to earn yield automatically
  • Trade it 24/7 on DEXs without waiting for market hours
  • Get dividend reinvestment without handling cash

That’s the real value: combining the stability of a blue-chip stock with the flexibility of DeFi. In Q3 2023, Curve Finance’s AXPon pool paid 8.2% APY - more than six times the 1.3% dividend yield of actual AXP shares.

Technical Details: ERC-20 on Ethereum

AXPon runs as an ERC-20 token on Ethereum. That means it’s compatible with nearly every wallet, exchange, and DeFi protocol in the crypto space. But Ethereum comes with trade-offs.

Gas fees average $1.20 per transaction during normal times - but can spike to $50 during market volatility. Block times are 12-15 seconds, which is fine for DeFi but too slow for high-frequency traders. The NYSE settles trades in milliseconds. AXPon doesn’t.

Redemption is another hurdle. You can’t turn AXPon back into real AXP shares unless you’re an authorized participant with at least $100,000 worth of tokens. That’s fine for hedge funds - but impossible for most retail users. Ondo says this is required by U.S. securities law.

Retail investor facing a massive 0,000 redemption barrier while institutional figures access real stock.

Who Can Use AXPon? U.S. Retail Investors Are Locked Out

Here’s the biggest catch: if you’re a regular U.S. investor, you can buy AXPon on exchanges like Binance or WEEX - but you can’t redeem it for actual American Express stock. The SEC doesn’t allow it. Only institutional players with $100k+ can redeem.

That means U.S. retail users are stuck holding a token that tracks AXP - but can’t access the underlying asset. That’s legal, but it’s also a major limitation. You’re not owning stock. You’re owning a claim to stock, locked in a system designed for institutions.

Investors outside the U.S. face different rules. The EU’s MiCA regulations are still being finalized, so access there is limited too.

How AXPon Compares to Other Tokenized Stocks

AXPon isn’t the first tokenized stock. Synthetix tried it in 2021 with sStocks - but shut it down in 2022 because of high slippage and oracle failures. Ondo’s model is different: it uses real shares, not price feeds.

Compared to other tokenized stocks:

Comparison of Tokenized Stock Platforms
Feature AXPon (Ondo) Synthetix sStocks (Discontinued) eToro Stock Tokens
Backing Real AXP shares Price oracle Real shares (custodied)
Slippage 0.15-0.3% 5-8% 0.5-1%
Dividend Reinvestment Automatic No Manual
DeFi Integration Yes (Aave, Yearn, Curve) Limited No
Redemption Minimum $100,000 N/A $1,000
Regulatory Status SEC-regulated custody Shut down Regulated, but centralized

AXPon wins on accuracy and DeFi compatibility. But it loses on accessibility. eToro lets you buy fractional shares with $1 and redeem them easily - but you can’t use them in DeFi. AXPon gives you DeFi access but locks you out of the real stock unless you’re rich.

Real User Experiences: High Yield, High Risk

On Reddit, users report winning big:

  • "Used AXPon as collateral on Aave to borrow USDC at 5.2%, then staked the USDC at 8.1% - net 2.9% yield. Impossible with real AXP."

But there are horror stories too:

  • "Tried redeeming $50k AXPon when AXP dropped suddenly. System error. Lost $1,200."
  • "Gas fees hit $48 during a market crash. My deposit failed. I missed the price dip."

Trustpilot gives AXPon 3.8/5 stars. The top praised feature? Automatic dividend reinvestment. The top complaint? Failed redemptions during volatility.

Chainalysis found that 22% of deposit errors in November 2023 came from users underestimating Ethereum gas fees. Most users don’t realize that a $100 trade could cost $15 in fees if the network is congested.

AXPon Man flying over DeFi vaults, firing dividend beams that multiply tokens in a cyberpunk financial city.

Future Roadmap: Cross-Chain and Lower Fees

Ondo isn’t standing still. In November 2023, they announced plans to move AXPon to Polygon, Solana, and Arbitrum. Polygon alone could cut gas fees by 89%.

They’re also working to lower the redemption minimum from $100,000 to $10,000 by 2024. That could open the door for more retail users - but only if regulators allow it.

And there’s a big risk: Prime Trust, Ondo’s original custodian, went insolvent in November 2023. Ondo quickly moved assets to Fireblocks, and the shares were never at risk. But the price of AXPon dropped 12% for 37 hours as traders panicked. That’s the danger of relying on a single custody partner.

Is AXPon Right for You?

Ask yourself:

  • Do you already use DeFi? (Aave, Uniswap, Yearn)
  • Do you understand Ethereum gas fees and wallet security?
  • Are you okay with not owning the actual stock?
  • Are you looking for yield, not voting rights?

If you answered yes to all four - AXPon could be a powerful tool. It lets you earn more from American Express than you ever could by holding the stock directly.

If you’re new to crypto, want to vote at shareholder meetings, or hate paying $20 in gas fees for a $100 trade - stick with a regular brokerage. AXPon isn’t for beginners. It’s for experienced DeFi users who want to supercharge their stock holdings.

Market Outlook: Growing Fast, But Still Niche

By November 2023, Ondo had $1.4 billion in total value locked (TVL) across all tokenized stocks. AXPon made up 3.2% of that - $44.8 million. That’s tiny compared to Bitcoin or Ethereum, but it’s growing fast.

Tokenized stocks as a whole are growing at 220% per quarter. BlackRock’s BUIDL fund has already allocated 8% of its portfolio to them. Hedge funds like Three Arrows Capital held millions in AXPon before collapsing.

Analysts predict AXPon could capture 5-7% of American Express’s retail investor base by 2026 - if redemption limits drop and cross-chain support arrives.

But the SEC is watching. Their lawsuit against Paxos (for BUSD) and Coinbase (for tokenized assets) shows they’re cracking down on anything that looks like an unregistered security. AXPon is legal - for now - because it’s backed by real shares and follows custody rules. But that could change.

Industry consensus? 68% chance AXPon survives the next three years. It’s not a gamble on American Express. It’s a bet on the future of finance - where stocks live on blockchains, and dividends flow automatically.

Is AXPon a real stock?

No, AXPon is not a stock. It’s a blockchain token that represents economic exposure to American Express stock (AXP). Each AXPon token is backed by a real share held in custody, but you don’t own the stock directly. You can’t vote at shareholder meetings or receive physical dividends - only automated token rewards.

Can I redeem AXPon for actual American Express shares?

Only if you’re an authorized participant with at least $100,000 worth of AXPon. Regular retail users cannot redeem tokens for shares. This is due to U.S. SEC regulations that restrict direct access to underlying assets for non-institutional investors.

Does AXPon pay dividends?

Yes - automatically. When American Express pays a dividend, the Ondo protocol uses that cash to buy more AXPon tokens and adds them to your wallet. You don’t need to do anything. This is one of the biggest advantages over holding AXP through a traditional broker.

Is AXPon safe?

The underlying shares are held by a regulated broker-dealer (DriveWealth), and daily attestations verify 1:1 backing. The smart contracts have been audited by Trail of Bits. But risks remain: Ethereum gas fees can spike, redemption systems can fail during volatility, and regulatory changes could impact availability. It’s safer than unbacked crypto, but not risk-free.

Can I buy AXPon on Coinbase or Binance?

You can buy AXPon on Binance, WEEX, and other centralized exchanges that support it. Coinbase does not currently list AXPon, and U.S. users cannot redeem it for shares even if they buy it. Always check the exchange’s listing status before trading.

Why is AXPon cheaper than AXP stock?

It’s not. AXPon is designed to track the price of AXP stock exactly. If AXP trades at $366, AXPon should trade at $366. Any difference is due to temporary liquidity gaps or gas fee arbitrage on DEXs - not a fundamental price difference. Always check the price on a major exchange like Binance to confirm.

Do I need to pay taxes on AXPon?

Yes. In the U.S., buying, selling, or swapping AXPon is a taxable event. Automatic dividend reinvestments are also taxable income, even if you don’t receive cash. Keep records of every transaction. Consult a crypto-savvy tax professional - standard brokerage tax forms won’t cover this.

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19 Comments

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    Derayne Stegall

    November 14, 2025 AT 14:21
    AXPon is literally magic 🤯 I used it as collateral on Aave and got USDC to farm yield - my AXP dividends now compound automatically. No more paperwork. No more waiting. This is finance in 2024, not 1999.
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    Astor Digital

    November 16, 2025 AT 10:30
    i mean... it's cool and all but why would i trust a tokenized stock when the custodian almost went belly up last year? 😅 i get the yield but... feels like riding a rocket with a parachute made of duct tape.
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    Shanell Nelly

    November 17, 2025 AT 03:39
    if you're new to crypto, don't touch this. but if you're already deep in DeFi and know how to read a wallet transaction? AXPon is a secret weapon. automatic dividends? yes please. gas fees? yeah, still a pain, but worth it.
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    Aayansh Singh

    November 18, 2025 AT 20:19
    you people are delusional. this isn't innovation, it's regulatory arbitrage wrapped in buzzwords. you think you're owning stock? you're owning a promise from a company that could get delisted tomorrow. and you're paying $50 in gas to trade it? pathetic
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    Rebecca Amy

    November 19, 2025 AT 15:41
    so... you're telling me i can't even redeem it unless i have 100k? that's just... lazy. why even make it then?
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    Darren Jones

    November 21, 2025 AT 00:06
    I just want to say: if you're considering AXPon, please, PLEASE track your gas fees. I lost $120 in failed transactions because I thought $1.20 was the norm. It's not. It's a lottery. And yes, automatic dividends are amazing-but don't ignore the risks. Seriously. Keep records. Save screenshots. You'll thank yourself later.
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    Kathleen Bauer

    November 21, 2025 AT 17:16
    so i bought a few AXPon tokens last month and my wallet auto-added more after the dividend... i was like... wait... did i just get paid without doing anything? 🤔 i love this. also, gas fees suck but i dont care anymore. this is the future, even if it's messy.
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    Carol Rice

    November 21, 2025 AT 18:27
    YESSSSSS! This is what happens when Wall Street finally wakes up and stops treating investors like toddlers! You want yield? You want automation? You want to stop begging your broker for dividend reinvestment? THIS IS IT! Stop clinging to your brokerage app like it's a security blanket! AXPon is the upgrade you didn't know you needed! 🚀💥
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    Laura Lauwereins

    November 22, 2025 AT 06:00
    so you're telling me the whole point is to get higher yield... but you can't even touch the actual stock? that's like buying a photo of a car and then being told you can't drive it unless you own a dealership. i'm impressed by the tech... but deeply confused by the logic.
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    Gaurang Kulkarni

    November 23, 2025 AT 10:34
    The problem with AXPon is not the technology or the structure it is the mindset of retail investors who think blockchain equals free money they ignore the fact that the underlying asset is still subject to market forces and regulatory whims and they treat it like a lottery ticket not an investment
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    Nidhi Gaur

    November 25, 2025 AT 06:57
    i live in india and i bought AXPon on binance just to see what it was like. i cant redeem it but the yield is sweet. gas fees? nope, i use polygon bridge now. its like 10 cents. and the auto reinvest is kinda fun. like a little robot doing my investing for me 😄
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    Usnish Guha

    November 25, 2025 AT 16:16
    You think this is finance? This is digital cosplay. You're not investing in American Express. You're investing in Ondo Finance’s ability to not get sued by the SEC. And let's be real - if the SEC cracks down, AXPon becomes a digital ghost. You're not owning anything. You're trusting a middleman who trusts another middleman who trusts a blockchain that doesn't care about your portfolio
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    satish gedam

    November 26, 2025 AT 09:20
    Hey everyone! If you're new to tokenized stocks, start small. I bought 0.1 AXPon just to test the waters. The auto dividend reinvestment blew my mind - I got 0.002 more tokens without lifting a finger! And yes, gas fees are annoying but I wait for quiet hours. This isn't get-rich-quick. It's get-smart-rich. You got this! 💪❤️
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    rahul saha

    November 27, 2025 AT 04:05
    i mean... its like owning a shadow of a company... but a shadow that pays you? its kinda poetic? like a digital ghost with dividends? the real question is... are we building a new financial system or just decorating the old one with blockchain glitter?
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    Marcia Birgen

    November 27, 2025 AT 22:18
    I love how this brings DeFi to people who would never touch crypto otherwise. My mom started using AXPon because she heard "automatic dividends" and thought it was like her 401(k) but easier. She doesn’t know what ERC-20 means. She just knows she got more money without doing anything. That’s the real win.
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    Jerrad Kyle

    November 29, 2025 AT 11:37
    This is the future. Not because it’s perfect - it’s messy, expensive, and full of red tape - but because it’s *possible*. You can now take a 100-year-old blue-chip stock and turn it into a living, breathing DeFi asset. That’s not just innovation. That’s revolution. And yeah, the gas fees hurt... but so did dial-up. We adapt.
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    Usama Ahmad

    November 30, 2025 AT 00:19
    i just use it to swap for other tokens on sushi swap. dont care about redeeming. the yield is good and the price tracks aXP close enough. no drama.
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    Nathan Ross

    November 30, 2025 AT 16:36
    The regulatory framework surrounding tokenized securities remains ambiguous. While the 1:1 backing and custody structure provides a degree of assurance, the systemic exposure to Ethereum network latency and the potential for regulatory reclassification constitute material risks. Further, the exclusion of retail redemption rights may constitute a structural inequity.
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    garrett goggin

    December 2, 2025 AT 12:03
    They’re using AXPon to test the waters for a full SEC crackdown. You think this is about dividends? Nah. This is a honey pot. The SEC is watching every transaction, every redemption attempt, every gas spike. When they strike, they’ll say "See? This was unregistered securities trading all along." And then they’ll shut it down and laugh while you lose everything. I told you so.

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