xStocks on Solana: Surpassing $2 Billion in Trading Volume in Just Six Weeks

xStocks, the tokenized U.S. equities created by Backed, have achieved an impressive trading volume exceeding $2 billion in the first six weeks since their introduction on the Solana network.

Key Takeaways

xStocks have reached over $2.1 billion in trading volume within six weeks of launching.
The platform accounted for approximately 58% of the tokenized stock trades this year.
xStocks allows global non-U.S. residents to trade U.S. equities around the clock without traditional brokerage obstacles.
Investors can leverage their xStocks in various DeFi protocols for added utility.

xStocks on Solana

Introduction to xStocks and Their Growth

According to a recent study by the Solana Foundation, xStocks—the tokenized U.S. equities launched by Backed on Solana—have gained notable traction since their launch on June 30. Within a short span of six weeks, xStocks surpassed $2.1 billion in cumulative trading volume, with $500 million occurring on-chain and over $110 million traded on decentralized exchanges.

By mid-August, xStocks comprised nearly 58% of all tokenized stock trading this year. Solana dominates this space, capturing the majority market value of $46 million out of a total of $86 million.

What Are xStocks?

xStocks are SPL tokens on Solana that represent fractional ownership of actual U.S. stocks and exchange-traded funds (ETFs), each backed 1:1 by shares stored with regulated custodians. As of August, there are more than 60 different xStocks available, featuring popular brands like Apple (AAPLx), Microsoft (MSFTx), Tesla (TSLAx), Nvidia (NVDAx), Meta (METAx), Amazon (AMZNx), and the S&P 500 index (SPYx).

Solana Logo

Accessibility and Functionality

xStocks offer a unique advantage to non-U.S. residents, allowing them to engage in 24/7 trading with immediate settlements. This setup provides access to U.S. equities without the typical barriers associated with traditional brokerage services. Centralized exchanges, such as Kraken and Bybit, facilitate broader distribution of these tokenized assets, while wallets like Phantom and Solflare, along with on-chain platforms like Raydium, Jupiter, and Kamino, support direct self-custody and allow users to integrate their holdings seamlessly.

Integration with DeFi Protocols

Beyond the straightforward ownership of xStocks, users can connect their assets with DeFi (decentralized finance) protocols. This enables investors to utilize their xStocks as collateral, engage in liquidity pools, and transfer assets across multiple platforms, maximizing the utility of their investments.

In summary, the rapid growth of xStocks on Solana highlights the evolving landscape of cryptocurrency and blockchain technology, paving the way for greater accessibility and functionality in trading U.S. equities.