XStocks, a tokenized stock platform developed by Real World Asset (RWA) tokenization company Backed and cryptocurrency exchange Kraken, has surpassed $10 billion in total trading volume in just over four months since its launch, demonstrating the growing demand for tokenized investment products.
The platform debuted earlier this year with more than 60 tokenized stocks and several exchange-traded funds (ETFs), including Nvidia, Amazon, Tesla, and Meta Platforms. Each xStock token is fully backed on a 1:1 basis by an underlying stock or ETF issued by Backed in partnership with Kraken.
XStocks works 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 on-chain trading activity, with over 45,000 on-chain holders participating and total assets under management reaching $135 million.
xStocks is one of several products that deal with tokenized stocks. Other players include Securitize, which issues tokenized stocks, funds, and other RWAs on the blockchain, and Robinhood Markets, which has also begun rolling out equity tokens in some markets.
Related: Kraken launches tokenized securities trading in Europe using xStocks
Despite being in a regulatory gray area, tokenized stocks will grow rapidly
John Murillo, chief business officer at fintech firm B2Broker, said the rapid growth in tokenized stocks comes even as the sector continues to operate in what some experts call a legal gray area.
Murillo was referring to the fact that tokenized stocks are typically digital representations of exposure to underlying financial assets, rather than stocks themselves.
“It is important to understand that investors do not own actual shares, but rather tokens issued by an intermediary, which may entitle them to payments if the underlying shares increase in value or are sold,” he told Cointelegraph.
Tokenized stock index. sauce: RWA.xyz
Despite regulatory uncertainty, industry data shows that the total amount of tokenized public equity currently held on-chain is approximately $666 million, and this figure does not include cumulative trading volume.
Related: Private companies listed to join Robinhood’s tokenized stock platform: CEO
