XStocks Launch on Ethereum May Accelerate Tokenized Stocks Amid Regulatory Scrutiny

• xStocks launched on Ethereum with ~60 tokenized stocks to broaden access to equities via blockchain.

• Backed Finance’s product previously launched on Solana, BNB Chain and Tron; exchanges like Kraken and Bybit have hosted listings.

• Tokenized stock market cap is roughly $342 million, ~1.2% of the $27.9B tokenized RWA market (RWA.xyz data).

xStocks Ethereum launch: tokenized stocks arrive on Ethereum — read key details, risks, market data and next steps. Learn more from COINOTAG.

What is the xStocks Ethereum launch?

xStocks Ethereum launch refers to Backed Finance’s roll-out of about 60 tokenized stocks on the Ethereum network. The product tokenizes shares such as NVIDIA, Amazon, Tesla, Meta and Walmart, aiming to expand trading access and liquidity for tokenized stocks on a major smart contract platform.

How did xStocks expand across blockchains?

xStocks first debuted on Solana, BNB Chain and Tron before launching on Ethereum. Backed Finance partnered with multiple crypto exchanges to host the product. Exchanges named in market coverage include Kraken and Bybit, which have facilitated earlier listings of tokenized equities.

Why are tokenized stocks controversial?

Tokenized stocks are controversial because they often do not confer the same legal rights as owning the underlying share. Legal experts warn token holders may lack direct claims on company assets or formal voting rights, placing tokenized stocks in a regulatory gray area.

What are the market metrics and adoption signals?

Ethereum leads DeFi with $90.8 billion total value locked on the measured day, representing roughly 60% of cross-chain TVL. Analytics platform RWA.xyz reports a tokenized stock market capitalization of about $342 million, roughly 1.2% of the $27.9 billion tokenized RWA market.

Tokenized equities have not been without controversy as global regulators and stock exchanges have pushed back against this new use of blockchain technology.

xStocks, a tokenized stock product owned by Backed Finance, is launching on Ethereum with about 60 tokenized stocks, including NVIDIA, Amazon, Tesla, Meta and Walmart, according to an announcement on Tuesday.

Before its debut on Ethereum, xStocks had launched on Solana, BNB Chain and Tron. Behind the platform is Backed Finance, a real-world asset (RWA) tokenization company that has been partnering with crypto exchanges, including Kraken and Bybit, to host its product.

“Ethereum is one of the world’s most widely adopted smart contract networks — and xStocks were built to meet users where they already are,” a Kraken representative told market press coverage.

Ethereum is the leader in decentralized finance (DeFi) among all blockchains. It had a $90.8 billion total value locked on Monday, about 60% of the overall TVL across all blockchains.

In June 2025, Gemini launched tokenized stock trading in the Ethereum ecosystem, and eToro is exploring the launch of tokenized stocks on Ethereum.

Real-world asset tokenization refers to creating a digital representation of a traditional financial or physical asset, such as a stock or commodity, on a blockchain. In some cases the underlying asset can be illiquid, like real estate.

Proponents say tokenized stocks democratize equities investing by removing hurdles and regulatory siloes. Opponents and regulators call for tighter oversight from bodies such as the US Securities and Exchange Commission when tokenized stocks are offered to retail investors.

Despite pushback, fintech and crypto firms continue to expand tokenized equity offerings. On June 30, Robinhood launched a blockchain to facilitate tokenized stock trading in Europe.

According to RWA.xyz, the tokenized stock market capitalization stands at $342 million at this writing, representing just 1.2% of the overall $27.9 billion tokenized RWA market cap.

Tokenized stock metrics. Source: RWA.xyz

Magazine analysis: Will Robinhood’s tokenized stocks REALLY take over the world? Pros and cons

How should investors evaluate tokenized stocks?

Evaluate custody, legal rights, issuer transparency and regulatory compliance before investing in tokenized stocks. Confirm whether tokens are redeemable for underlying shares and whether custodial arrangements are insured or governed by a regulated intermediary.

What are practical steps to trade tokenized stocks safely?

1. Verify issuer details and custody arrangements; confirm legal structure and redemption rights.
2. Check exchange or platform compliance disclosures and regulatory registrations where available.
3. Assess counterparty risk and trading liquidity for the tokenized stock you plan to buy.
4. Limit position size relative to total portfolio until legal and custody clarity improves.

Frequently Asked Questions

Are tokenized stocks available on multiple blockchains?

Yes. xStocks launched on Solana, BNB Chain and Tron before adding Ethereum. Multi-chain availability aims to increase distribution and liquidity across different user bases.

Can tokenized stocks be redeemed for real shares?

Redemption rights vary by issuer. Some tokenized stock products offer mechanisms to redeem tokens for underlying shares, while others represent synthetic exposures without direct share claims. Verify issuer documentation for specifics.

Key Takeaways

• Market expansion: xStocks’ Ethereum launch brings ~60 tokenized stocks to a leading smart contract platform.
• Regulatory risk: Tokenized stocks remain in a legal gray area; investors may lack shareholder protections.
• Due diligence: Confirm issuer structure, custody, redemption rights and platform compliance before trading.

Conclusion

The xStocks Ethereum launch marks a notable expansion of tokenized stocks on a major blockchain, increasing access but raising regulatory and custody questions. Investors should approach tokenized stocks with careful due diligence, focusing on issuer transparency and legal rights. COINOTAG will continue tracking developments and regulatory guidance.