Important Highlights
- xStocks traded over $300 million in volume just 4 weeks after launch.
- Tokenized stocks let you access U.S. equities 24/7 using crypto wallets.
- Some experts question ownership rights and weekend liquidity issues.
Tokenized Stocks Are Gaining Real Momentum
If you’ve been watching the evolution of traditional finance and crypto, it’s hard to miss what’s happening with tokenized stocks.
Just four weeks after launch, Backed Finance’s xStocks product has already racked up more than $300 million in trading volume.
That’s a huge number for such a new product and it shows there’s real appetite for trading U.S. stocks on the blockchain.
More and more people want to trade the assets they know like Tesla or Apple on-chain, without the middlemen. And tokenized stocks might be the answer they’ve been waiting for.
How Tokenized Stocks Work (and Why They’re So Popular)
Let’s break it down: Tokenized stocks are digital tokens that represent actual shares of U.S. companies.
Every xStock token is backed 1:1 by the real stock, held by a licensed custodian.
So, while you’re not technically a shareholder, you’re getting exposure to the price movement of the stock.
What makes them different? For starters, you can trade them 24/7, unlike the U.S. stock market.
They also run on Solana’s fast and cheap blockchain, so you can send them around in seconds no need for brokers or bank wires.
Right now, xStocks are available on platforms like Bybit, Kraken, and through Solana’s DeFi apps.
So if you’re already using crypto, accessing these digital stocks is pretty seamless.
Tokenized Stocks Show Where Finance Is Headed
xStocks isn’t the only game in town. There’s a bigger shift happening, and tokenized stocks are becoming part of a growing trend: traditional assets moving onto crypto rails.
Companies like Robinhood and Gemini are also getting in on it, offering tokenized stock trading to their users in Europe.
Meanwhile, Backed Finance posted on X:
“The total onchain transaction volume for xStocks has surpassed $300 million. This is only the start.”
In short, people are showing they want to trade real-world assets on blockchain platforms and this is only gaining steam.
Not Everyone’s Sold on Tokenized Stocks
But here’s the thing: not everyone is buying the hype. Some experts say tokenized stocks aren’t the real thing and they have a point.
Anton Golub, COO of the crypto exchange FreedX, shared on LinkedIn:
“You’re not buying Tesla. You’re buying a token that tracks Tesla.”
He’s basically saying this is more like a CFD (Contract for Difference) than a stock.
With tokenized stocks, you don’t get voting rights, dividends, or any control over the company.
So while the price tracks the stock, you’re not really a shareholder.
And CFDs aren’t new they’ve been around in Europe for years.
So some argue this isn’t a revolution it’s just a repackaged version of something old, now running on the blockchain.
What About Liquidity? That’s Still a Work in Progress
Liquidity is another problem with tokenized equities, particularly on weekends. You can trade them whenever you want, but should you?
When traditional stock markets are closed, market manufacturers can step back, which can lead to large price interval and low business activity.
This means that if you try to buy or sell during those times, you cannot get a bad price or any business.
As Parsec Finance put it:
“On weekends, spreads will likely be wide and crazy.”
So yes, while trading around the clock sounds great in theory, you might face problems with slippage or execution in real life.
Still, Tokenized Stocks Aren’t Going Anywhere
Despite the criticism, one thing is clear: tokenized stocks are here to stay.
The fact that xStocks hit $300 million in volume so quickly says a lot about where investor interest is heading.
People want easy, borderless access to familiar assets and they want to do it using crypto tools.
As regulations catch up and more trusted players enter the space, we could see tokenized stocks become a major part of everyday investing.