XStocks, a tokenized equity platform created by real-world asset (RWA) tokenization firm Backed and crypto exchange Kraken, has surpassed $10 billion in total transaction volume just over four months after its launch, signaling a growing appetite for tokenized investment products.
The platform debuted earlier this year with more than 60 tokenized equities, including Nvidia, Amazon, Tesla and Meta Platforms, as well as several exchange-traded funds (ETFs). Each xStock token is fully backed 1:1 by the underlying equity or ETF, issued by Backed in partnership with Kraken.
XStocks operates across Ethereum, Solana, BNB Chain and Tron, expanding accessibility across major blockchain ecosystems.
In addition to total trading volume, xStocks reported nearly $2 billion in onchain transaction activity and participation from over 45,000 onchain holders, with aggregate assets under management of $135 million.
The xStocks offering is one of several products with exposure to tokenized equities. Other players include Securitize, which issues tokenized shares, funds and other RWAs on the blockchain, and Robinhood Markets, which has also begun rolling out stock tokens in select markets.
Related: Kraken launches tokenized securities trading in Europe with xStocks
Tokenized stocks grow rapidly despite being in regulatory gray area
The rapid growth of tokenized equities has occurred even as the sector continues to operate in what some experts describe as a legal gray area, according to John Murillo, Chief Business Officer at fintech company B2Broker.
Murillo was referencing the fact that tokenized shares are typically digital representations of exposure to an underlying financial asset, rather than the shares themselves.
“It is crucial to understand that investors do not own actual shares; they hold tokens issued by intermediaries, which may entitle them to payouts if the underlying shares increase in value or are sold,” he told Cointelegraph.
Tokenized stock metrics. Source: RWA.xyz
Despite regulatory uncertainty, industry data indicate that the total value of tokenized public stocks currently held onchain is approximately $666 million, a figure that excludes cumulative trading volume.
Related: Private companies line up to join Robinhood’s tokenized equity platform: CEO
