Backed Finance Launches xStocks on Major Platforms, Democratizing Investment Access

Backed Finance has launched tokenized stocks, known as xStocks, on major platforms including Bybit, Kraken, and Solana DeFi protocols. This move marks a significant innovation in financial markets, as it democratizes investment access by providing new trading opportunities for a broader range of investors. The introduction of xStocks on these platforms allows for the trading of over 60 blue-chip and tech stocks, bringing traditional financial assets onto the blockchain and enhancing market participation.

The launch of xStocks is led by Adam Levi, the co-founder of Backed Finance. Levi emphasized the transformative potential of this initiative, stating that it represents a monumental leap forward in democratizing access to financial markets. By integrating familiar assets onto the blockchain with unprecedented accessibility, Backed Finance is not only bridging traditional finance and decentralized finance (DeFi) but also laying the groundwork for a truly open, efficient, and inclusive global financial system.

The introduction of xStocks could potentially shift investor behavior, leading to increased participation in decentralized finance. The broadened accessibility may influence market dynamics and attract both retail and institutional investors. Financial systems may see structural shifts with this development, as tokenized assets align with MiFID II regulations, encouraging transparent operations. Institutional adoption is likely to grow following this compliance framework, further integrating traditional finance with DeFi.

This initiative also signifies a technological evolution and greater interoperability with DeFi platforms. Increased liquidity and total value locked (TVL) on platforms like Kamino and Raydium are expected as a result. By bridging traditional finance with DeFi, a new era of inclusive and efficient markets commences. This development may accelerate the use of blockchain technology in finance, with market data providing further insights into the long-term effects once integrated trading volumes and liquidity statistics are available.

Backed Finance has made a significant stride in the financial sector by introducing tokenized stocks for 60 prominent equities and Exchange Traded Funds (ETFs). This initiative, part of the xStocks Alliance, includes token versions of major stocks such as Apple, Microsoft, and Core S&P 500, making them available for trading around-the-clock during weekdays. The tokens will also soon be available as collateral for DeFi lending, according to Backed Finance. This move aligns with the growing trend of bringing traditional financial instruments, including equities, onto blockchain rails, a process known as tokenization of real-world assets.

Crypto exchanges Bybit and Kraken are the first to allow trading with these tokens, with integrations with DeFi apps Kamino Swap, Raydium, and Jupiter to follow later in the day. This development is part of a broader effort to integrate traditional finance with decentralized finance, creating a more open and inclusive global financial system. The xStocks Alliance, orchestrated by Backed Finance, is a group of exchanges and DeFi apps committed to building an open on-chain market for real-world assets.