Tokenized Equities Revolution: Discover the Future of Investing with xStocks
The world of finance is witnessing a groundbreaking change with the rise of tokenized equities. Recently, xStocks, a series of tokenized shares including popular companies like Tesla, Apple, and Nvidia, has hit an impressive trading volume of $2 billion. This achievement marks a significant milestone in the adoption of tokenized equities.
Launched less than three months ago, Backed’s xStocks offers investors a unique opportunity to purchase tokens that mimic the price movements of major stocks. According to a Dune dashboard, the total trading volume for these tokenized shares recently surpassed the $2 billion mark, underscoring the growing interest in this innovative market.
Centralized Exchanges Leading the Way
The majority of trading activity for xStocks has taken place on centralized exchanges (CEXs), with $1.94 billion recorded. Leading CEXs such as Kraken, Bybit, and Gate have emerged as major platforms for trading these innovative financial instruments. Meanwhile, decentralized exchanges (DEXs) have reported a trading volume of $103.8 million, highlighting the dual-channel appeal of tokenized equities.
Tokenized Equities Gaining Popularity
Despite the impressive trading volume, the number of unique holders remains modest, with approximately 25,500 individuals owning xStocks tokens. The total assets under management for xStocks amount to $43.6 million. Notably, the tokenized version of Tesla stock is the most popular, boasting over 11,000 holders, followed by an S&P 500 token with nearly 10,000 holders. Other popular tokens include those tracking Apple, Nvidia, and Circle.
Advocates for tokenized equities argue that this market holds immense potential. It offers easier access to U.S.-listed stocks for international investors and the possibility of 24/7 trading. Major exchanges like Coinbase and Kraken are showing interest in launching similar offerings, signaling a bright future for this sector.
Future Prospects for Tokenized Equities
In January, BlackRock CEO Larry Fink emphasized the need for regulatory bodies like the U.S. Securities and Exchange Commission to swiftly approve the tokenization of bonds and stocks. This sentiment aligns with the growing acceptance of digital assets, as seen with platforms like Robinhood, which plans to offer European users access to over 200 tokenized U.S. stocks.
Backed, in collaboration with Kraken, recently announced an expansion of xStocks support from Solana to BNB Chain. This move allows users to trade tokenized U.S. equities as BEP-20 tokens, further enhancing the accessibility and versatility of these assets. As noted by Kraken co-CEO Arjun Sethi, the response to xStocks underscores the chain-neutral, composable, and multichain nature of future capital markets.
In conclusion, the rise of tokenized equities, exemplified by xStocks, is transforming the investment landscape. As more investors embrace these digital assets, the potential for growth and innovation in the financial sector continues to expand.
