Backed Finance’s Tokenized Equities Product Surpasses $300M in Trading Volume
Tokenized finance continues to gain momentum, with Switzerland-based Backed Finance reporting over $300 million in trading volume for its xStocks platform less than a month after launch.
xStocks, which offers tokenized representations of publicly traded U.S. equities, has quickly found traction across centralized exchanges like Bybit and Kraken, as well as Solana-based DeFi protocols. Each token is fully backed 1:1 by the corresponding real-world equity held by a licensed custodian, enabling around-the-clock, blockchain-based exposure to traditional markets.
The tokens use Solana’s SPL standard for seamless integration with Web3 applications and benefit from issuance under Switzerland’s DLT regulatory framework.
In a post on X, xStocks described the rapid volume milestone as “just the beginning,” suggesting further growth lies ahead as demand for tokenized assets increases.
Tokenization Trend Accelerates
xStocks’ success reflects a broader push toward bridging traditional finance and DeFi. Recent moves by Robinhood and Gemini to offer tokenized U.S. stocks in Europe highlight the growing global appetite for digital asset representations of real-world securities.
Critics Question Structure and Utility
However, not everyone is sold on the model. FreedX COO Anton Golub warned that tokenized equities are simply price-tracking instruments rather than true equity holdings.
“You’re not buying Tesla stock—you’re buying a token tied to it via an offshore SPV,” Golub posted on LinkedIn. “You get no voting rights, no custody, and no ownership—similar to CFDs, which have existed for years in Europe.”
He argued that while tokenization adds a blockchain layer, it doesn’t fundamentally alter access or rights.
Liquidity Concerns Linger
Meanwhile, analysts at Parsec Finance highlighted possible weekend liquidity issues. In a recent newsletter, they noted that spreads could become unpredictable due to limited market maker activity, particularly during off-hours.
“Tokenized equities still face early-stage liquidity challenges,” Parsec wrote. “Volumes depend heavily on market makers willing to take the risk before demand matures.”
Conclusion
Despite these challenges, xStocks’ rapid growth underscores a clear trend: investors want more accessible, on-chain exposure to traditional markets. Whether tokenized stocks become a lasting bridge between legacy finance and DeFi will depend on how the industry addresses structural limitations and user protections in the coming months.
