Kraken and Backed Expand xStocks to BNB Chain for Enhanced Liquidity

Kraken and Backed have announced a strategic partnership with BNB Chain to expand the accessibility of xStocks, which are tokenized versions of U.S. equities. This collaboration aims to bring traditional financial instruments onto the blockchain, integrating them into the decentralized finance (DeFi) ecosystem. Through this partnership, BNB Chain becomes the latest member of the xStocks Alliance, a consortium dedicated to making tokenized U.S. equities more widely accessible.

xStocks will now be deployed as BEP-20 tokens on BNB Chain, allowing users to access tokenized assets such as AAPLx (Apple), TSLAx (Tesla), SPYx (S&P 500 ETF), and NVDAx (Nvidia). This integration is expected to enhance the liquidity and usability of these tokenized equities within the BNB ecosystem. Kraken has stated that users will soon be able to deposit and withdraw xStocks via BNB Chain, leveraging the network's high performance, low fees, and active user base.

BNB Chain's recent Maxwell upgrade has significantly reduced block times from 1.5 seconds to 0.75 seconds, positioning it as one of the fastest major blockchains. This upgrade, along with its average transaction fee of $0.04, has helped BNB Chain capture the top ranking in daily decentralized exchange (DEX) volume. The upgrade's success underscores BNB Chain's commitment to optimizing its network for speed and efficiency, making it an attractive platform for the deployment of tokenized assets.

Kraken’s co-CEO Arjun Sethi emphasized the importance of a multichain future for capital markets, describing tokenized equities as "programmable settlement primitives" that enable real-time transfers and atomic settlement. He highlighted the need for assets like equities to move fluidly across different ecosystems, protocols, and liquidity layers. This expansion to BNB Chain aligns with Kraken's vision of tokenized equities as a foundational upgrade to the financial system, enhancing composability with DeFi tools such as lending and derivatives.

Backed co-founder Adam Levi echoed this sentiment, stating that integrating with BNB Chain aligns with the vision of xStocks as a neutral, public-good asset class. This integration is expected to facilitate the use of xStocks with various DeFi tools, further expanding their utility and accessibility within the DeFi ecosystem. The partnership between Kraken, Backed, and BNB Chain represents a significant step towards the broader adoption of tokenized equities and the integration of traditional financial instruments with blockchain technology.