Backed Finance’s xStocks Tops $300M in On-Chain Volume in Under a Month
Tokenized asset firm Backed Finance has reported over $300 million in cumulative trading volume for its tokenized U.S. equities product, xStocks, less than a month after launch—highlighting growing investor interest in blockchain-based exposure to traditional financial markets.
Launched on platforms including Bybit, Kraken, and various Solana-based DeFi protocols, xStocks allows users to trade tokenized shares of U.S. companies 24/7. Each xStock token is fully backed 1:1 by the underlying equity, held by a regulated custodian, and issued in compliance with Switzerland’s DLT regulations. Built on Solana’s SPL standard, the tokens offer high-speed, low-cost transfers with full Web3 compatibility.
“xStocks have surpassed $300 million in total on-chain transaction volume, showing clear demand for tokenized equities,” the company posted on X, adding that the growth trend is likely to continue.
Tokenized Equities Gain Momentum
The strong debut comes amid a broader push to merge traditional finance with decentralized infrastructure. Other platforms such as Robinhood and Gemini have launched similar tokenized stock offerings for European users, as demand for round-the-clock trading and borderless asset access continues to grow.
Criticism from Industry Insiders
Not everyone is convinced. Anton Golub, COO of crypto exchange FreedX, criticized tokenized equities for lacking key features of actual stock ownership. “You’re not buying Tesla—you’re buying a token that tracks Tesla’s price,” Golub said in a LinkedIn post. He argued these tokens, typically issued via offshore special-purpose vehicles (SPVs), do not confer shareholder rights such as voting or direct custody.
Golub likened the products to traditional CFDs (Contracts for Difference), which also allow exposure to underlying assets without granting ownership. “This isn’t democratization—it’s a rebranded CFD structure under a tokenization narrative,” he added.
Liquidity and Weekend Risks
Liquidity challenges have also been flagged, particularly over weekends. According to a recent Parsec Finance newsletter, the market for tokenized stocks may face a “cold start” problem, where limited participation discourages market makers, leading to wide spreads and inconsistent pricing.
“There are still real frictions,” Parsec wrote, noting that early-stage liquidity is often shallow and dependent on market makers betting on future demand.
Conclusion
Despite critiques, xStocks’ rapid growth reflects increasing demand for tokenized access to traditional markets. As infrastructure matures and regulatory clarity improves, tokenized equities could become a major bridge between legacy finance and decentralized platforms—though questions around legal ownership, liquidity, and investor protections remain open.
