Latest news with #BackedFinance
Yahoo
6 days ago
- Business
- Yahoo
Backed Finance's Tokenized Stocks Product Volume Jumps to $300M
Demand for trading stocks on-chain is real. Switzerland-based Backed Finance's tokenized U.S. equities product, xStocks, has seen a cumulative trading volume of over $300 million less than a month since going live on Bybit, Kraken, and Solana decentralized finance (DeFi) platforms. xStocks are 24/7 onchain tokens representing shares in publicly traded U.S. firms. Each token is fully backed 1:1 by the corresponding underlying stock held by a licensed custodian, allowing investors to take exposure to traditional assets while ensuring transparency and security. These tokens are issued by Backed Finance, which operates under the country's DLT regulatory framework. They are built using the Solana Program Liberty (SPL) token standard to facilitate high-speed transferability and on-chain compatibility with Web3 and decentralized applications. "xStocks have crossed $300m in Total Transaction Volume Onchain, a testament to the demand for tokenized equities," xStocks said on X, calling the growth "just the beginning" that could see volumes double from here. The increased demand for tokenized stocks is part of the broader macro trend of accelerating convergence between traditional markets and decentralized finance. Recent launches by giants like Robinhood and Gemini, offering tokenized U.S. stocks to European users, are proof of this accelerating shift. Not everyone is impressed by tokenized equities While moving stocks to the blockchain rails and enabling access to overseas investors sounds revolutionary, not everyone is impressed. According to Anton Golub, chief operating officer at crypto exchange FreedX, tokenized equities are merely a wrapper and not actual equities. "You're not buying Tesla. You're buying a token that tracks Tesla. Issued by an offshore SPV or broker structure that holds underlying shares," Golub said in a LinkedIn post. Golub explained that buying tokenized equities doesn't provide the buyer with voting rights, direct custody of the stock, or actual ownership, as is the case with stock CFDs issued in Europe. CFD, or Contract for Difference, is a contract that stipulates the buyer will pay the seller the difference between the current value of an asset and its value at the time the contract was initiated. The stock CFDs are fractionalized, allowing traders to buy and sell a fraction of the underlying asset's value with leverage. That allows traders to control a larger position with a smaller capital investment. "CFD brokers in Europe [have] let you trade fractional U.S. stocks for years. You can buy Tesla, Apple, or S&P 500 with 5x leverage and full liquidity," Golub noted. This [tokenization] isn't democratizing access. It's just reframing CFDs with tokenization narrative." Additionally, concerns have been raised about liquidity drying up over the weekend. Liquidity refers to the ease of executing large buy and sell orders at stable prices. "There are still significant frictions with these new products," Parsec Finance noted in its newsletter early this month. "Liquidity cold start problem (liquidity begets volume but relies on market makers taking the risk and betting on real usage), spreads will be wide and probably insane on weekends."Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-06-2025
- Business
- Yahoo
Backed Finance Debuts Tokenized Stocks on Bybit, Kraken and Solana DeFi Protocols
Real-world asset tokenization firm Backed Finance is launching its tokenized stock offering on major crypto exchanges, and Solana (SOL)-based decentralized finance (DeFi) protocols, bringing equities like Apple, Amazon, and Microsoft and crypto-native platforms closer. The offering includes some 60 equity and ETF tokens that are available for trading around-the-clock, the company said on Monday. Crypto exchanges Bybit and Kraken are first to allow trading with the tokens, followed by integrations with DeFi apps Kamino Swap, Raydium and Jupiter later in the day, the press release said. The tokens will soon be available as collateral for DeFi lending, too, Backed said. The move comes as momentum grows for bringing traditional financial instruments including equities onto blockchain rails, also known as tokenization of real-world assets. Crypto exchanges, such as Coinbase and Gemini, are seeking to expand into tokenized securities trading, while Robinhood was reportedly working on offering tokenized U.S. stocks for EU users. Backed's rollout fits into that trend. The firm is orchestrated the xStocks Alliance, a group of exchanges and DeFi apps committed to building an open onchain market for real-world assets. "xStocks represent a monumental leap forward in democratizing access to financial markets," Adam Levi, co-founder of Backed, said in a statement. "By bringing familiar assets onto the blockchain with unprecedented accessibility, we are not just bridging traditional finance and DeFi; we are building the foundational blocks for a truly open, efficient, and inclusive global financial system where everyone can participate in wealth creation," Levi Sie sich an, um Ihr Portfolio aufzurufen.
Yahoo
23-05-2025
- Business
- Yahoo
Kraken To List Tokenized Version of Nvidia, Apple, Tesla Shares
Kraken plans to list tokenized shares of Nvidia, Apple, Tesla and over 50 other U.S. stocks and exchange-traded funds (ETFs), the Wall Street Journal reported. The tokens, deployed on Solana SOL, will be known under the name 'xStocks' and will be available to trade 24/7 for investors all across the world. Some of the ETFs that will be available to trade include the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, and the SPDR Gold Shares (GLD). The stocks will be represented by real shares held by Backed Finance and can be redeemed 1:1 for their cash value. Kraken had announced the initial rollout of over 11,000 U.S.-listed stocks and ETFs in April, starting with 10 U.S. states and offered through Kraken Securities. This latest announcement expands Kraken's offering to include tokenized versions of over 50 stocks and ETFs to customers outside of the U.S., starting with Europe, Latin America, Africa and Asia. The move puts Kraken in direct competition to platforms like Robinhood (HOOD) and makes it the first exchange to successfully offer tokenized shares of major U.S. stocks. Binance attempted to launch tokenized U.S. stocks in 2021 but canceled their plans eventually due to regulatory uncertainty. A Kraken spokesperson told the Wall Street Journal that the exchange is 'actively working with various regulators' to ensure that xStocks can be offered legally in each jurisdiction as regulation varies. Tokenization, which turns real-world assets into blockchain tokens, has become the latest buzz word in crypto with more and more companies starting to enter the space. Some, including Ondo Finance, BlackRock and Franklin Templeton, have long been pioneers in the area, pushing their overall tokenization market to a $65 billion market cap as of May.
