Backed Finance has launched a groundbreaking service that introduces tokenized U.S. stocks on major platforms like Bybit, Kraken, and Solana-based decentralized finance (DeFi) protocols. This innovation allows investors worldwide to trade tokenized versions of top U.S. equities, including companies like Apple, Tesla, and Nvidia, without the constraints of traditional trading hours.
Tokenized U.S. Equities: Bridging the Gap Between TradFi and DeFi
Backed Finance’s new initiative, called xStocks, tokenizes a selection of the most popular U.S. stocks and exchange-traded funds (ETFs). These tokens are backed 1:1 by real shares of the underlying companies, ensuring that their value is tied directly to the stock market performance. Unlike traditional markets, these tokenized stocks are available for trading 24/7, offering global investors more flexibility.
The tokenized stocks are issued on the Solana blockchain, known for its speed and low transaction fees. This makes trading these assets more efficient and affordable, reducing costs compared to traditional equity trading. The tokenized assets also enable users to participate in DeFi lending protocols, allowing them to use these stocks as collateral for borrowing and lending within decentralized ecosystems.
Regulatory Compliance and Global Access to U.S. Stocks
One of the key factors that set Backed Finance’s offering apart is its focus on regulatory compliance. xStocks are issued in line with the European Union’s MiFID II regulations, ensuring transparency and protecting investors. This regulatory framework is crucial in ensuring that these tokenized equities are compliant with global financial standards, offering reassurance to both retail and institutional investors.
Additionally, the availability of these tokens outside the United States expands the access to U.S. equities. Global investors can now buy and sell tokenized shares of major companies with ease, bypassing the limitations of traditional stock exchanges. By integrating DeFi with traditional stock market assets, Backed Finance is playing a significant role in the future of finance, offering an innovative solution for cross-border investment in U.S. equities.
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