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Tokenized equities, a growing segment of the financial technology landscape, have recently seen significant growth. The real-world asset platform Backed has introduced a line of tokenized equities, known as xStocks, which allows investors to purchase tokens that track the price of popular stocks like Tesla, Apple, and Nvidia. According to a Dune dashboard, the total trading volume for these tokenized shares has surpassed $2 billion [1].

The majority of trading activity, $1.94 billion, has occurred on centralized exchanges (CEXs), with Kraken, Bybit, and Gate being the top platforms for xStocks trading. Decentralized exchanges (DEXs) have seen trading volume of $103.8 million, indicating a growing interest in the decentralized market for tokenized equities. Despite the high trading volume, the total number of unique holders of xStocks tokens remains relatively low, at approximately 25,500. The aggregate of assets under management for xStocks is $43.6 million, highlighting the potential for growth in this market segment.

The tokenized version of Tesla stock is the most popular among xStocks, with over 11,000 holders. Other popular tokens include those tracking the S&P 500, Apple, Nvidia, and Circle. The low number of unique holders suggests that while the market is growing, it is still in its early stages.

Advocates for tokenized equities, including leaders in both crypto and traditional finance, see significant opportunities in this market. Coinbase and Kraken, among others, have shown interest in launching tokenized equities. In January, BlackRock CEO Larry Fink expressed his desire for the U.S. Securities and Exchange Commission to rapidly approve the tokenization of bonds and stocks. Additionally, Robinhood has announced plans to offer EU users the chance to invest in more than 200 tokenized versions of U.S. stocks [1].

Backed, which launched xStocks in May, has recently expanded its support from Solana to BNB Chain, enabling users to trade tokenized U.S. equities as BEP-20 tokens. Kraken co-CEO Arjun Sethi stated that this expansion indicates a future where capital markets will be chain-neutral, composable, and multichain by design [1].

While the tokenized equities market holds promise, it remains a niche segment with a relatively small user base. As the market continues to evolve, it will be essential to monitor its growth and the regulatory environment surrounding it.

References:
[1] https://www.tradingview.com/news/the_block:146c518b4094b:0-backed-s-xstocks-which-includes-tokenized-tesla-shares-surpasses-2-billion-in-trading-volume/