Recently, a new product was implemented on the network of #solana , which consists of tokenized stocks of large companies and indices, now available for purchase aimed at retail users. But how is this achieved and what benefits does it bring if I buy these tokenized stocks? Let's explore.
On June 30, Backend Finance announced that Xstocks was now available on the Solana network, allowing users to buy tokenized stocks like Nvidia, #Tesla , Google, Microstrategy, Meta among others, directly from any Solana wallet, without going through KYC (Identity verification).
In total, there are more than 60 options to choose from according to user interest, and they are available in a centralized manner (through centralized exchanges) as well as decentralized (through DEX like @Jupiter 🪐 , Raydium, kamino).
But why did they choose Solana to launch this product?
It is known that Xstock is the first of several tokenized stock initiatives to reach the Solana network. While Xstock is aimed at retail audiences, the next protocols that arrive will focus on an institutional level, as well as the development of other products. This implies that they are seeing Solana as a center of 'internet capital markets'.
The reason for the choice of these developers to launch products on the Solana network is mainly due to the exclusive utilization of Solana's performance and composability to offer fast financial products, with low cost and accessibility for everyone.
How do these tokenized stocks work?
If we decide to buy these tokenized stocks, we have to consider that each xstock token represents one share of the corresponding underlying asset and is backed 1 to 1 by each underlying share. This means that if we compare the prices of stocks for example Nvidia (NVDA) with the xstock Nvdax, the prices are very close.
This is achieved thanks to the oracles, in this case, #Chainlink is the main provider, providing real-time data feeds and ensuring that prices are as accurate as possible.
What benefits do I have if I decide to buy these stocks?
Apart from the 1 to 1 backing of the underlying value, these tokens will be available 24/7 (Even on weekends when the traditional market closes and arbitrage will work to adjust the price), can be purchased in minimal amounts, can be transferred between wallets, in the future can be used in protocols #defi (loans) and is accessible to everyone (except the USA for now).
Once again, I emphasize that this product is aimed at retail users, and this is due to the insufficient liquidity (for now) that currently exists in the market. If you want to buy in large quantities, you may not receive the same amount in monetary value that you are paying.
How can I buy in a decentralized manner?
The easiest way to acquire these products is through #jupiter with a Solana wallet (I recommend the Jupiter Mobile wallet for its interface). Once you are on the page, you connect your wallet and go to the Pro option.
And then the 'Stocks' tab
Here you decide, according to your own criteria, what the best option is, and you can buy using SOL, stablecoin, or a known Memecoin and that's it ...
What is expected in the future for these products?
It is expected that products will be created at an institutional level (greater capital deployed), Defi integrations, creation of products with ETFs among others.
Honestly, I find this an incredible development and advancement on the Solana network. I also want to mention that some similar products are already being prepared on other blockchain networks for both retail and institutional users in collaboration with various companies. This is the beginning for the tokenization of assets to expand within the blockchain network without any restrictions and with greater accessibility.
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