Since 2017, the finance and blockchain worlds have been grappling with the question, "Can real assets be converted into digital tokens on the blockchain?"
The connection to securities is quite natural: owning a stock means owning a share of that company. With tokenization, this sense of ownership remains, but it becomes much more flexible, and the concept of fractional ownership comes to the fore. Furthermore, transactions can be completed in seconds; blockchains lack traditional systems like T+2. Geographical constraints are eliminated, and access is available at any time. It is in this dynamic environment that projects like Backed and xStocks come into play.
Backed Finance, based in Switzerland, launched in 2025. The platform holds a corresponding real asset in a licensed custodian for every token minted, thus creating 1:1-backed, ERC20-compatible tokens. We see the launch of the xStocks ecosystem in May 2025. Moreover, it has gained significant momentum, with over $300 million in trading volume in just the first four weeks.
xStocks, launched on the Solana blockchain network in partnership with Kraken, is tradable on both centralized exchanges and DeFi (decentralized finance) infrastructures. Since Kraken launched xStocks in June 2025, more than 60 stock and ETF tokens have entered circulation. Blockchain diversity is also rapidly expanding, expanding beyond Solana to networks like BNB Chain and TRON, providing easier access.
From a technical perspective, xStocks' core features are quite clear: each token is backed by a real stock; this backing is transparently verified via the Chainlink infrastructure (Proof of Reserve). It operates on high-speed, low-cost, and DeFi-friendly blockchains like Solana, providing real-time price data and a cross-chain transfer infrastructure. Users can store it in their wallets, use it as collateral in DeFi protocols, or trade it on centralized exchanges.
When I consider their differences from traditional financial markets, several key points stand out: 24/7 trading, geographic freedom, fractional ownership, fast exchanges, and integration with DeFi. These new structures offer investors flexibility, global access, and an experience brimming with innovation. However, not everything is so rosy. Regarding legal and risk, sources like the Wall Street Journal report that some xStock tokens have seen price deviations of up to 300% compared to stocks like Amazon or Apple; these deviations typically occur during periods of low liquidity and market closures.
Furthermore, these tokens are often structured as "debt rights," meaning they lack shareholder rights (such as voting rights); the token holder appears only to be able to convert the asset into cash. There are also regulatory uncertainties, as legal frameworks in the US are not yet fully established, exposing the risk of market manipulation, anonymous transactions, and potential problems with regulators.
As for which stocks xStocks covers, it includes major companies like Apple, Tesla, Google, Meta, Amazon, Coinbase, and NVIDIA, as well as ETFs like the S&P 500. A recently announced partnership with platforms like BitMart has further expanded access to these assets, joining the xStocks ecosystem. BitMart stands out as one of the major exchanges joining this space, following Kraken and Bybit.
While these platforms currently offer incredible advantages, it's also important to properly understand the risks. Looking ahead, I anticipate that these technologies will become even more intertwined in our financial transactions. I see tokenization as a bridge, and in the future, this bridge could become the main road. It will be exciting to see where this road leads beyond finance. For a bright future...
