Trading Volume for Backed’s Tokenized Stocks Hits $300M Milestone

Backed Finance’s Tokenized Stock Volumes Surpass $300M in First Month

Backed Finance has crossed a major milestone with its tokenized equities product, xStocks, which has recorded over $300 million in trading volume within four weeks of launch—highlighting surging interest in on-chain exposure to traditional assets.

Launched across Bybit, Kraken, and several Solana-based decentralized platforms, xStocks offers tokenized versions of publicly traded U.S. stocks. Each token is backed 1:1 by the corresponding equity held by a licensed custodian, enabling 24/7 trading under Switzerland’s regulated DLT framework. The tokens are issued using Solana’s SPL standard, ensuring fast, scalable, and blockchain-native interoperability.

“This is just the beginning,” the xStocks team said in a post on X, noting that volume could potentially double as adoption accelerates.

Institutional and Retail Demand Fuel Growth

The success of xStocks reflects a broader market trend toward bridging traditional finance and decentralized platforms. Firms like Robinhood and Gemini have also entered the tokenized equities space, targeting demand in Europe and beyond. The ability to trade fractionalized stocks on-chain, without the constraints of traditional markets’ operating hours, is becoming an attractive value proposition for global investors.

Criticism and Skepticism Remain

Despite the early momentum, not all market observers are impressed. Anton Golub, COO of crypto exchange FreedX, criticized tokenized equities as derivative-like instruments rather than true shares. “You’re not buying Tesla; you’re buying a token that mimics Tesla,” Golub said, pointing to offshore structures that issue these tokens without granting voting rights or direct ownership.

Golub compared the model to traditional Contracts for Difference (CFDs), which have long allowed European traders to gain leveraged exposure to U.S. stocks. “This is not democratizing finance. It’s a rebranded CFD offering,” he argued.

Liquidity Still a Challenge

Market analysts have also raised concerns about liquidity, particularly during weekends. A recent Parsec Finance report highlighted the “cold start” issue common to new financial products—where low participation deters liquidity providers, resulting in wider spreads and volatile trading conditions.

“There are still real frictions,” the report noted, emphasizing that reliable liquidity depends on sustained volume and market maker confidence.

Outlook

Despite criticism, Backed Finance’s rapid growth underscores a growing appetite for tokenized real-world assets. As legal frameworks evolve and user demand expands, tokenized equities could play a critical role in reshaping the future of capital markets—particularly for investors seeking constant, borderless access to traditional financial instruments.

About The Author

ctleditor

See author's posts