Bitrue Launches xStocks Platform for 24/7 Trading of Tokenized U.S. Equities

Bitrue’s Chief Marketing Officer, Adam O’Neill, recently discussed the launch of the xStocks platform, which introduces tokenized U.S. equities to the blockchain, enabling 24/7 trading of major stocks such as Apple, Tesla, and NVIDIA. The platform’s initial offering includes six assets: Apple, Tesla, NVIDIA, MicroStrategy, Circle, and an S&P 500 ETF, with plans to expand the range of tokenized stocks in the near future. Each token is backed 1:1 by the underlying stock, verified through Chainlink’s Proof of Reserve mechanism.

Tokenized stocks are digital assets that aim to replicate the returns of real-world equities on the blockchain. This innovative product offers global accessibility and lower entry barriers while providing indirect equity exposure. The platform’s 24/7 trading feature allows users to trade even outside of U.S. market hours, although price discovery during these periods relies on supply and demand dynamics within the specific crypto exchange or blockchain platform. This can result in wider spreads for users, but Bitrue believes it is important for users in different time zones to have increased options.

O’Neill highlighted that trading volumes are lower during off-hours, making it a tougher trading environment for users. He advised users to take extra caution and make full use of the available data, including trading depths, which are fully transparent on the exchange. The problem mostly affects large traders, while small traders, who make up the majority, are less impacted. The advantages of tokenized stocks on Bitrue include 24/7 trading access, fractional ownership, faster settlement, global accessibility, lower transaction costs, and increased transparency. However, the drawbacks include price dislocation risks, cybersecurity risks, and potential tax implications depending on the user’s location.

Bitrue chose to start with six major companies: NVIDIA, Apple, Tesla, MicroStrategy, Circle, and an S&P 500 ETF. These stocks are among the most popular and actively traded globally, providing a strong underlying price reference. The inclusion of an S&P 500 ETF offers retail investors immediate diversification across a broad market index. Bitrue does not have minimum market cap considerations but is currently focused on offering well-known blue-chip brands. The company plans to expand its offerings based on user feedback and is shortlisting names like Meta, Alphabet, and Amazon for future inclusion.

O’Neill assured users that each tokenized stock is truly backed 1:1 by the real stock through the Chainlink interoperability and data standards, including the Chainlink Proof of Reserve. This mechanism provides a robust and transparent way to verify that the tokenized stocks are fully collateralized. Users can withdraw these tokenized stocks off the exchange and use them in DeFi products that support them. However, these tokens do not grant ownership or similar rights and cannot be converted into the underlying stock.