Bitrue Launches Tokenized Stock Trading for US Equities

Crypto exchange Bitrue has announced the launch of tokenized stock trading for US equities via xStocks, a platform from Backed Finance. This new feature allows users in non-restricted jurisdictions to invest in some of the largest global tech brands, earning from their success. The initial six tokenized stocks supported by Bitrue include AAPLX (Apple), CRCLX (Circle Internet Group), MSTRX (MicroStrategy), NVDAX (NVIDIA), SPYX (SPDR S&P 500 ETF Trust), and TSLAX (Tesla).

These tokenized stocks are available via Bitrue Alpha, a recently launched feature that enables a fast-track for popular tokens to be listed for trading. This allows users to capitalize on early momentum, with successful coins potentially being listed on the spot exchange. Users in specific territories can access this first group of tokenized stocks via the Bitrue app, with the exchange planning to add more tokenized stocks at regular intervals.

The announcement notes that these tokens “do not grant ownership, dividends, or shareholder rights. They are not registered securities and are not available to residents of the US, UK, EU, or other restricted jurisdictions.” This means that while users can trade these tokenized stocks, they do not receive the same benefits as traditional stockholders.

Operating on blockchain gives these tokenized stocks several advantages over traditional stock trading. They are available 24/7 to users outside of the US, and trades happen within seconds. There is no secondary broker account or “excess” broker fees. Finally, tokenized stocks are backed by real-world assets (RWAs), while blockchain ensures full ownership and transparency.

According to Adam O’Neill, Chief Marketing Officer at Bitrue, “we’re working to break down the barriers of traditional finance that often exclude smaller investors, and now our users have a new avenue to expand their portfolio in a manner that can deliver real returns for them.” This initiative by Bitrue aims to democratize access to global tech brands, providing users with a new way to invest in these companies.

xStocks, the platform from Backed Finance, introduces tokenized versions of popular US stocks and exchange-traded funds (ETFs). These xStocks are blockchain-based tokens that represent the value of a portfolio of traditional equities. The product is designed for integration into DeFi protocols, allowing users to utilize xStocks as collateral in lending platforms, for borrowing, or in other crypto apps. The ability to hold real-world assets on-chain, trade them 24/7, and integrate with DeFi protocols marks a significant leap in the evolution of digital stock trading.