Backed Finance Launches xStocks for 24/7 U.S. Equity Trading on DeFi Platforms

Backed Finance has introduced a pioneering service that brings tokenized U.S. equities to prominent platforms such as Bybit, Kraken, and Solana-based decentralized finance (DeFi) protocols. This development enables investors around the world to trade tokenized versions of leading U.S. stocks, including companies like Apple, Tesla, and Nvidia, without the limitations imposed by traditional trading hours.

Backed Finance’s new service, named xStocks, tokenizes a selection of the most sought-after U.S. stocks and exchange-traded funds (ETFs). These tokens are backed on a 1:1 basis by actual shares of the underlying companies, ensuring that their value is directly linked to the performance of the stock market. Unlike traditional markets, these tokenized stocks are available for trading 24 hours a day, 7 days a week, providing global investors with greater flexibility.

The tokenized stocks are issued on the Solana blockchain, renowned for its speed and low transaction fees. This makes trading these assets more efficient and cost-effective, reducing expenses compared to traditional equity trading. The tokenized assets also allow users to participate in DeFi lending protocols, enabling them to use these stocks as collateral for borrowing and lending within decentralized ecosystems.

A key differentiator of Backed Finance’s offering is its emphasis on regulatory compliance. xStocks are issued in accordance with the European Union’s MiFID II regulations, ensuring transparency and investor protection. This regulatory framework is essential in ensuring that these tokenized equities meet global financial standards, providing reassurance to both retail and institutional investors.

Moreover, the availability of these tokens outside the United States broadens access to U.S. equities. Global investors can now easily buy and sell tokenized shares of major companies, circumventing the constraints of traditional stock exchanges. By integrating DeFi with traditional stock market assets, Backed Finance is significantly contributing to the future of finance, offering an innovative solution for cross-border investment in U.S. equities.