Possibility to buy shares of Tesla, Apple or Nvidia directly from a cryptocurrency wallet, without intermediaries and at any time during the day. This is not science fiction, but a reality that began this year.
The first days of July 2025 brought a breakthrough event for the world of cryptocurrencies and traditional finance. Backed Finance, in cooperation with Kraken and Bybit exchanges and the Solana Foundation, launched xStocks, introducing over 55 tokenized US stocks and ETFs on the Solana blockchain. This historic moment continues to change the way we invest in capital markets.
Shares combined with blockchain technology
Imagine being able to buy Tesla stock at 3 a.m., sitting at home on your couch, using only your cryptocurrency wallet. You don’t have to wait for the stock exchange to open, you don’t need a traditional brokerage account, and your assets remain under your full control. This is exactly what xStocks tokenized shares make possible.
Issued as SPL tokens on the Solana blockchain, these digital representations of shares of companies such as Apple, Tesla, Nvidia or the popular SPY fund can not only be bought and sold on the Kraken and Bybit exchanges, but also used in the decentralized finance ecosystem. Integration with DeFi protocols such as Raydium, Kamino or Jupiter opens up completely new possibilities. Investors can now provide liquidity, swap tokens or use their shares as collateral for loans, all 24 hours a day, seven days a week.
IMPORTANT: Trump withdraws 100% tariffs on China – Bitcoin and S&P 500 recover after overnight losses
Why tokenization changes everything?
Democratizing access to financial markets is more than just a buzzword. For millions of people in developing countries or regions with limited access to US stock exchanges, xStocks represents a breakthrough. All you need is a cryptocurrency wallet and internet access to invest in the world’s largest corporations.
But the real magic happens when you combine traditional assets with the innovation of decentralized finance. The possibility of using tokenized SP500 shares as collateral for a DeFi loan, without having to visit a bank, fill out forms or wait for a loan decision, sounds like science fiction. And yet it is already working, and has been for several months. Do you want to take out a loan against your technology shares? You can do it in a few minutes, sitting on the sofa.
Moreover, investors can now create portfolios combining traditional stocks with cryptocurrencies, managed from one place. You can provide liquidity in tokenized equity pools and earn passive income while maintaining exposure to the US market. It is a combination of the stability of proven financial instruments with the flexibility and innovation of crypto.
The mechanism of operation of tokenized assets
Backed Finance, a Swiss company founded in 2021, has created a system in which each xStock token is backed one-to-one by real shares or ETF units, held by licensed third-party custodians. This ensures that the token price reflects the value of the underlying asset, with the option to redeem for cash value.
The process is relatively simple. Users can purchase xStocks on Kraken and Bybit exchanges or on Solana decentralized platforms such as Jupiter, exchanging them for SOL or USDC. The tokens can then be traded around the clock like any other cryptocurrency, with the main liquidity located on standard AMM platforms such as Raydium. To mint or redeem tokens for cash, KYC verification is necessary, e.g. on the Kraken exchange.
Particularly interesting is the possibility of storing xStocks in hot-wallets such as Solflare or Phantom. Users retain full control over their assets, which increases security and privacy. Additionally, tokenization enables investing with capital from just one USD, which opens markets to new groups of investors.
We are still in the early stages of development
However, enthusiasm must be tempered with a dose of realism. Despite the impressive growth in volumes since launch, average daily volume of tokenized shares is just a few million USD, with almost all of this activity taking place on Solana. These are still very modest numbers compared to traditional markets.
Liquidity also remains a significant challenge. Purchasing GOOGLx tokens for as little as $1,000 can result in price slippage of more than two percent, which is unacceptable for serious traders. Although the situation is better in the case of more popular tokens such as TSLA or SPY, where transactions worth one hundred thousand USD generate slippage of one percent, although this is still far from an ideal situation. What makes us optimistic is the fact that the project has the support of significant industry players, which should improve the liquidity situation over time.
Another problem is the regulatory issue and the issue of trust. The token issuer is registered in the Channel Islands in Jersey, which may raise questions about the legality and security of securing these assets. Additionally, since shares are not natively issued on the blockchain, price discovery occurs off-chain. This creates additional risk for market makers on weekends when traditional exchanges are closed but crypto markets operate non-stop. This results in wider spreads and higher costs for retail investors trading outside standard trading hours.
Robinhood is coming into play
xStocks is just part of the bigger picture in this sector. Robinhood, a platform known for its revolutionary approach to investing and excellent user experience, introduced tokenized stocks and ETFs on Arbitrum, layer two of Ethereum, in late June this year. Thirty percent of the company’s revenue already comes from cryptocurrency-related activities, so this move has definitely paid off.
European investors can now trade over two hundred US stocks and ETFs 24 hours a day, five days a week, commission-free. What’s particularly intriguing, however, is that Robinhood also offers tokenized shares in private tech giants such as OpenAI and SpaceX. This gives retail investors access to companies that were previously reserved exclusively for “venture capital” and accredited investors.
The platform’s ambitions go even further. Following a successful rollout on Arbitrum, Robinhood is in the process of building its own layer two on Ethereum, designed specifically for trading and investing in tokenized stocks. This blockchain is also intended to host DeFi applications, futures and options, creating a comprehensive financial ecosystem.
Floodgates open
Over recent months, the pace of blockchain adoption and regulatory progress in the cryptocurrency industry has been unprecedented. Crypto-friendly administrations are popping up around the world, with the United States leading in the acceptance of blockchain technology. Memecoins are now classified as collectible assets, DeFi is receiving a warm welcome from regulators, and traditional finance companies are sprinting towards crypto via stablecoins, ETFs and newly tokenized stocks.
However, the journey is just beginning. The ultimate goal is for companies to natively issue shares directly on the blockchain, which would eliminate intermediaries, increase transparency and fully integrate capital markets with decentralized ecosystems.
xStocks and Robinhood are just the beginning. Bonds, credit instruments, real estate and all other asset classes will eventually find their way onto the blockchain. The process of tokenization of real assets is gaining momentum, and capital from traditional finance is starting to flow into the crypto world. This will create a wealth effect that will translate into an increase in the value of layer one tokens, DeFi projects and the entire ecosystem.
For investors and observers of the cryptocurrency market, the coming quarters promise to be extremely interesting. Tokenization of real assets ceases to be a theoretical concept and becomes a tangible reality that may define the next phase of the evolution of global finance.
