XStocks, a tokenized equity platform developed by Backed, a real-world asset (RWA) tokenization firm, and Kraken, a cryptocurrency exchange, has reached a total transaction volume exceeding $10 billion just four months after its launch. This milestone signals a growing interest in tokenized investment products.
The platform was launched earlier this year, offering over 60 tokenized equities, including shares of major companies like Nvidia, Amazon, Tesla, and Meta Platforms, as well as various exchange-traded funds (ETFs). Each xStock token is backed 1:1 by the underlying equity or ETF, issued by Backed in partnership with Kraken. XStocks operates across multiple blockchain networks, including Ethereum, Solana, BNB Chain, and Tron, thereby broadening accessibility across major blockchain ecosystems.
In addition to its total trading volume, xStocks has reported nearly $2 billion in on-chain transaction activity and participation from over 45,000 on-chain holders, with aggregate assets under management of $135 million. The xStocks platform facilitates 24/7 trading and fractional ownership, bridging traditional finance and blockchain technology. Tokenized stocks can be traded at any time, unlike traditional markets, and investors can purchase fractions of shares.
The rise of tokenized equities occurs even as the sector operates within a somewhat undefined legal landscape. John Murillo, Chief Business Officer at B2Broker, noted that tokenized shares typically represent digital exposure to an underlying financial asset rather than direct ownership of the shares themselves. Investors hold tokens issued by intermediaries, which may entitle them to payouts based on the value of the underlying shares. The International Organization of Securities Commissions (IOSCO) also highlighted that a lack of clarity exists regarding whether investors actually own the underlying asset or just a digital stand-in.
Other platforms also offer exposure to tokenized equities, including Securitize and Robinhood Markets. Gate has also launched an xStocks section, providing users with 24-hour trading for tokenized stock assets.
The rapid growth of tokenized stocks has sparked debate over their regulatory status, with some experts describing the sector as operating in a legal gray area. While existing regulations can address some known risks, blockchain technology introduces new technical and operational challenges. Despite the legal ambiguity, the increasing transaction volumes and growing adoption suggest a strong appetite for tokenized investment products that offer increased accessibility and trading flexibility.
Tokenization is viewed as a way to lower costs and speed up trades; however, technical roadblocks and legal uncertainties can pose risks to investors. As regulators work to establish clearer guidelines, market participants face the challenge of determining whether they are dealing with actual assets or simply digital claims.
