Tokenized equities have recently made significant headlines as xStocks, a groundbreaking initiative, has surpassed a staggering $2 billion in trading volume. This remarkable achievement underscores the growing interest and potential of tokenized equities in the financial landscape.
Understanding Tokenized Equities
Launched just a few months ago, xStocks offers investors a novel way to engage with the stock market. By allowing the purchase of tokens that mimic the price movements of popular stocks like Tesla, Apple, and Nvidia, xStocks has created a bridge between traditional stock investing and the burgeoning world of cryptocurrencies.
Trading Volume Milestone
The total trading volume for these tokenized shares has recently crossed the $2 billion mark, according to data from a Dune dashboard. A large proportion of this trading activity, approximately $1.94 billion, has been facilitated through centralized exchanges (CEXs) such as Kraken, Bybit, and Gate. Meanwhile, decentralized exchanges (DEXs) account for $103.8 million of the trading volume.
Popularity and Engagement
Despite the impressive trading numbers, the number of unique holders of xStocks tokens remains relatively modest, with around 25,500 holders. The total assets under management for xStocks stand at $43.6 million, highlighting potential for further growth and adoption.
Leading xStocks
Among the various tokenized options, Tesla’s tokenized stock leads in popularity, boasting over 11,000 holders. Following closely is an S&P 500 token, with nearly 10,000 holders. Other popular tokens include those tracking Apple, Nvidia, and Circle.
The Future of Tokenized Equities
Proponents of tokenized equities are optimistic about the future. Such innovations could democratize access to U.S.-listed stocks for international investors and provide the benefit of 24/7 trading. Notable exchanges like Coinbase and Kraken are exploring further expansion in this arena.
In January, BlackRock’s CEO Larry Fink expressed his desire for the U.S. Securities and Exchange Commission to expedite the approval of tokenized bonds and stocks. Robinhood has also announced plans to offer European users the ability to invest in over 200 tokenized U.S. stocks.
Recent Developments
In recent developments, Backed, along with Kraken, has expanded xStocks’ reach from Solana to the BNB Chain. This move allows users to trade tokenized U.S. equities as BEP-20 tokens, reflecting the industry’s shift towards a multichain, composable future.
Kraken co-CEO Arjun Sethi remarked on the momentum, 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.”
Please note: This article is provided for informational purposes only and is not intended as legal, tax, investment, or financial advice.
