XStocks Achieves $10 Billion in Trading Volume Just Four Months After Launch as Tokenized Stocks Gain Popularity

In just four months since its launch, XStocks, a platform for tokenized equities developed by the asset tokenization firm Backed in collaboration with crypto exchange Kraken, has achieved an impressive total transaction volume exceeding $10 billion. This milestone highlights an increasing interest in tokenized investment products.

Key Takeaways

XStocks has surpassed $10 billion in trading volume just four months post-launch.
The platform offers over 60 tokenized equities and various ETFs, fully backed 1:1 by underlying assets.
It operates across multiple blockchains, enhancing accessibility.
Over 45,000 on-chain holders have engaged with XStocks, which manages $135 million in assets.
The growth occurs in a regulatory gray area, with investors holding tokens rather than actual shares.

XStocks hits $10B in volume 4 months after launch as tokenized stocks gain traction

XStocks was introduced earlier this year, offering more than 60 different tokenized equities, such as shares from Nvidia, Amazon, Tesla, and Meta Platforms, along with various exchange-traded funds (ETFs). Each token on the XStocks platform is fully backed on a 1:1 basis by the respective underlying equity or ETF, issued through a partnership between Backed and Kraken.

The platform supports transactions across multiple blockchain ecosystems, including Ethereum, Solana, BNB Chain, and Tron, thus broadening its reach and accessibility.

In addition to boasting a significant trading volume, XStocks has recorded nearly $2 billion in on-chain transaction activity and has more than 45,000 on-chain holders. Additionally, the total assets under management on the platform amount to $135 million.

XStocks is part of a larger trend that includes other providers in the space, such as Securitize, which facilitates the issuance of tokenized shares, funds, and other real-world assets on the blockchain, and Robinhood Markets, which is introducing stock tokens in various markets.

Tokenized Stocks See Rapid Growth Despite Regulatory Challenges

The swift expansion of the tokenized equities market comes amid ongoing discussions about the regulatory environment surrounding these products. John Murillo, Chief Business Officer at fintech company B2Broker, pointed out that although these tokenized shares provide digital exposure to underlying financial assets, they are not actual shares themselves.

"It is essential to recognize that investors do not own the physical shares; instead, they possess tokens issued by intermediaries. These tokens may grant them rights to payouts if the underlying shares appreciate in value or are sold," Murillo explained to Cointelegraph.

Tokenized stock metrics. Source: RWA.xyz

Despite the uncertainties regarding regulation, industry data suggest that the total value of tokenized public stocks currently held on-chain is approximately $666 million, which does not account for the cumulative trading volume.