Tokenized equities have seen an incredible surge, with xStocks, a pioneering platform offering tokenized versions of popular stocks like Tesla, Apple, and Nvidia, reaching over $2 billion in trading volume. This development marks a significant milestone in the world of crypto and traditional finance, showcasing the growing interest in digital assets.
Less than three months since its launch, Backed’s xStocks has allowed investors to engage with tokenized equities, providing a novel way to track the price movements of major stocks through tokens. The platform’s trading volume recently surpassed an impressive $2 billion, as revealed by a comprehensive Dune dashboard analysis.
Centralized Exchanges Lead the Way
Most of the trading activity for xStocks has occurred on centralized exchanges (CEXs), accumulating a staggering $1.94 billion in volume. Leading the pack are well-known exchanges such as Kraken, Bybit, and Gate. Meanwhile, decentralized exchanges (DEXs) have contributed $103.8 million to the total trading volume, highlighting a significant yet smaller role in the ecosystem.
Tokenized Equities: A Growing Market
Despite the promising figures, the number of unique holders of xStocks tokens remains modest, with approximately 25,500 investors. The total assets under management for these tokenized shares amount to $43.6 million. Among the available options, the tokenized Tesla stock stands out with over 11,000 holders, followed closely by an S&P 500 token with nearly 10,000 holders. Other popular choices include tokens tracking Apple, Nvidia, and Circle.
The Future of Tokenized Equities
The potential of tokenized equities is being recognized by both crypto enthusiasts and traditional finance leaders. This innovative market could simplify access to U.S.-listed stocks for international investors while enabling 24/7 trading capabilities. Exchanges like Coinbase and Kraken are already exploring the introduction of tokenized equities.
In a statement earlier this year, BlackRock CEO Larry Fink advocated for the rapid approval of tokenizing bonds and stocks, emphasizing the transformative potential of this market. Furthermore, Robinhood is expanding its digital asset offerings, planning to allow EU users to invest in over 200 tokenized U.S. stocks.
Backed, in collaboration with Kraken, has recently announced an expansion of xStocks’ support to the BNB Chain, transitioning from Solana. This move will enable users to trade tokenized U.S. equities as BEP-20 tokens, further enhancing the platform’s versatility.
Kraken co-CEO Arjun Sethi highlighted the significance of this development, stating, “The response to xStocks has made one thing increasingly clear — the future of capital markets will be chain-neutral, composable, and multichain by design.”
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