Kraken and Backed Launch xStocks on BNB Chain for Tokenized Equities Trading

Kraken and Backed have launched xStocks on the BNB Chain, a platform that allows for the trading of tokenized equities. This initiative enables eligible clients to deposit and withdraw tokenized equity assets through the BNB Chain, marking a significant step in integrating traditional financial markets with decentralized finance (DeFi). The xStocks platform, developed by Backed and supported by Kraken, offers tokenized versions of popular U.S. equities such as Apple (AAPLx), Tesla (TSLAx), Nvidia (NVDAx), and the S&P 500 (SPYx). These assets, represented as BEP-20 tokens, are tradable across the BNB Chain ecosystem and can be integrated into various DeFi products, available around the clock.

The partnership aims to expand how people interact with financial markets by leveraging on-chain technology. Eligible Kraken users in supported jurisdictions will soon be able to trade these tokenized equities on platforms like PancakeSwap and utilize them in lending, yield, and structured products. This move is expected to unlock new opportunities for traders, investors, and builders by providing instant, 24/7 access to financial markets without the constraints of traditional market hours or gatekeepers. The integration of tokenized equities into DeFi applications will allow users to trade, earn, or borrow these assets just like cryptocurrencies.

BNB Chain was chosen as the platform for this initiative due to its low gas fees, high throughput, and fast finality. The chain already leads in stablecoin activity and tokenized asset volume, making it an ideal partner for advancing the vision of tokenized equities. The collaboration reflects BNB Chain’s commitment to bringing high-quality financial instruments on-chain and connecting traditional markets with decentralized finance for users worldwide.

Kraken Co-CEO Arjun Sethi emphasized the future of capital markets, stating that tokenized equities are not just digital wrappers for traditional assets but a foundational upgrade to the financial system. Backed co-founder Adam Levi highlighted the potential of tokenized equities to surpass the scale and utility of stablecoins, especially with BNB Chain’s global reach and deep liquidity. Sarah S, Head of Business Development at BNB Chain, noted that tokenizing real-world assets on BNB Chain is a meaningful step in making global finance more accessible and transparent.

The rollout of xStocks on BNB Chain is imminent, and it is expected to provide users with a new class of assets designed to work seamlessly across DeFi. This development is significant for builders in DeFi, traders looking for new markets, and observers interested in the future of financial technology. The collaboration between Kraken, Backed, and BNB Chain represents a strategic move towards democratizing access to tokenized equities and enhancing the integration of traditional finance with decentralized systems.

As xStocks remain off-limits to U.S. users, the geo-restriction aligns with strict securities regulations. This integration highlights a merging of traditional markets with crypto-based decentralized finance to provide new trading and investment opportunities. The introduction of xStocks may increase liquidity within BNB Chain’s ecosystem, potentially elevating the chain’s total value locked (TVL). Users might witness improved flexibility as deposits and withdrawals via BNB and Solana increase.

New tokenized assets such as AAPLx, TSLAx, and others could serve as collateral within DeFi applications. This might stimulate platforms like PancakeSwap and Venus Finance by offering innovative financial instruments and thereby expanding composability. Historical trends suggest tokenization could advance mainstream finance integration in DeFi environments. While challenges remain, the success of prior platforms underpins its potential market influence, igniting interest among innovators within crypto trading circles.