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Backed Finance has launched xStocks, bringing over 60 tokenized stocks to major crypto exchanges and Solana DeFi platforms, bridging traditional finance and blockchain.
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This innovative product enables 24/7 trading of blue-chip and crypto-related stocks with onchain settlement and no commissions on select platforms.
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According to COINOTAG, Bybit confirms xStocks comply with EU MiFID II regulations and plans to integrate dividend support in the future.
Discover how Backed Finance’s xStocks enable seamless 24/7 trading of tokenized stocks on Kraken, Bybit, and Solana DeFi, merging traditional assets with blockchain.
Revolutionizing Stock Trading with Tokenized Assets on Kraken and Bybit
Backed Finance’s introduction of xStocks marks a significant advancement in the tokenization of traditional equities, now accessible on leading crypto exchanges Kraken and Bybit. This initiative offers users the ability to trade over 60 stocks representing industry giants such as Apple, Tesla, and Amazon, alongside prominent crypto firms like Coinbase and Robinhood. By leveraging blockchain technology, xStocks provide a novel trading experience characterized by 24/7 market access, eliminating the constraints of conventional stock market hours and geographical limitations.
Kraken emphasizes the removal of typical trading barriers such as delays, limits, and complex signups, aiming to democratize access to equity markets. Meanwhile, Bybit highlights near-instant onchain settlement and one-to-one backing of tokens with real shares, ensuring transparency and trust. This seamless integration of traditional stocks into the crypto ecosystem represents a strategic convergence of decentralized finance and established financial instruments.
Compliance and Innovation: Navigating Regulatory Frameworks with xStocks
Bybit’s assertion that xStocks comply with the European Union’s Markets in Financial Instruments Directive II (MiFID II) underscores the product’s commitment to regulatory adherence, a critical factor for institutional and retail investors alike. This compliance ensures that xStocks meet stringent operational and investor protection standards, fostering confidence in tokenized stock trading.
Moreover, Bybit’s roadmap includes potential dividend support, which would align tokenized stockholders’ benefits with those of traditional shareholders, enhancing the appeal of xStocks as a comprehensive investment vehicle. The integration of xStocks into Bybit’s TradFi and Byreal platforms further bridges the gap between traditional and digital asset markets, offering hybrid trading solutions that cater to diverse investor preferences.
Expanding Stock Access through Solana’s DeFi Ecosystem
Backed Finance’s xStocks are not confined to centralized exchanges; they are also embedded within Solana’s rapidly growing decentralized finance (DeFi) landscape. Integration with prominent Solana protocols such as Kamino, Raydium, and Jupiter enables users to utilize tokenized stocks in liquidity provision, decentralized trading, and swapping activities. This DeFi compatibility introduces unprecedented flexibility and utility for stock tokens, allowing them to participate in yield generation and decentralized market operations.
The addition of xStocks support to Solana’s Phantom wallet enhances user accessibility, although full functionality is still being deployed. With Solana’s DeFi ecosystem currently holding over $8.5 billion in total value locked, the inclusion of tokenized stocks represents a meaningful expansion of asset classes available to DeFi participants, potentially attracting traditional investors into decentralized platforms.
Implications for the Tokenization Market and Future Outlook
The launch of xStocks by Backed Finance contributes to the broader $24 billion tokenization market, which continues to grow as blockchain infrastructure matures. By enabling the tokenization of blue-chip stocks and integrating them into both centralized and decentralized platforms, xStocks exemplify the evolving landscape where traditional finance and blockchain technology intersect.
Industry experts note that Ethereum remains a dominant force in tokenization; however, Solana’s high throughput and low fees position it as a competitive alternative for asset tokenization and DeFi integration. The success of xStocks could catalyze further innovation in tokenized securities, encouraging regulatory clarity and wider adoption.
Conclusion
Backed Finance’s xStocks initiative represents a pivotal step in merging traditional equity markets with blockchain technology, offering investors enhanced accessibility, liquidity, and trading flexibility. By supporting compliance with regulatory frameworks and integrating with both centralized exchanges and Solana’s DeFi ecosystem, xStocks set a new standard for tokenized stock trading. As this market segment evolves, investors and platforms alike should monitor developments closely to capitalize on the expanding opportunities within tokenized securities.
