Tokenized stock trading: how it works

The tokenized stock trading are redefining the relationship between traditional and digital markets: over 60 tokenized stocks are now available on the Kraken and Bybit exchanges, as well as throughout the Solana-based DeFi.

This innovation allows for dynamic exposure to blue-chip stocks directly on the blockchain.

Tokenized stock trading: how the new frontier of assets works

With the official launch of xStocks, announced by Backed Finance on Monday, a new era opens for investors. Tokenized stocks allow for the buying, selling, or decentralized management of companies like Netflix, Meta, Amazon, Coinbase, Tesla, and Microsoft.

Currently, users can access this wide selection not only on centralized platforms like Kraken and Bybit, but also on multiple DeFi protocols of Solana.

The tokenization involves converting a real asset into a representative digital token on the blockchain.

As a result, logistical and temporal barriers of traditional markets are overcome, with the additional possibility of composing the assets within innovative DeFi strategies.

The new xStocks are already compatible with the main DeFi protocols of Solana. According to the announcement by Backed Finance, from the opening of trades, it is possible to use these assets on Kamino, Raydium, and Jupiter.

These protocols are key nodes of the ecosystem: for example, Kamino facilitates lending operations, Raydium supports liquidity provision, while Jupiter facilitates decentralized trading.

This full compatibility could represent a turning point for the mass adoption of stocks on blockchain.

The Phantom wallet of Solana, a very popular wallet, has added support for xStocks. However, the full functionality is still being implemented. Despite this, it is already possible to:

• use tokenized stocks as a liquidity resource on Raydium,
• exchange them on Jupiter,
• perform swaps to and from Kamino.

This happens with the security, speed, and interoperability of the Solana infrastructure. Among the more than 60 tokenized stocks available are giants like Apple, McDonalds, Nvidia, and Robinhood.

It is noteworthy that the selection includes both emerging companies and historical companies in the global industry, thus offering diversified options aligned with both technological and financial trends.

Kraken and Bybit: the impact on centralized exchanges

This move by Backed Finance is crucial because it allows the liquidity and flexibility typical of cryptocurrencies to be combined with the solid guarantees of traditional financial assets.

Moreover, the system operates within a DeFi Solana which, according to DefiLlama data, already boasts a total value locked of 8.56 billion dollars.

Kraken and Bybit are among the largest global exchanges and, with support for tokenized stocks, they open access to new audience segments. Investors can:

• access traditional stocks in digital form,
• negotiate 24/7 without geographical limits,
• leverage the speed and low transaction costs typical of the settore crypto.

This initiative reduces the distance between traditional stock markets and the universe of cryptocurrencies, promoting volumes and strategies that were previously impossible in the classic regulated circuits.

The integration of tokenized stocks highlights the flexibility of the Solana ecosystem, already known for its high speed and low fees. Thanks to the extension of xStocks in the main DeFi protocols, Solana confirms itself as an innovation hub for decentralized finance.

The possibility of managing traditional assets alongside cryptocurrencies and stablecoins offers users new tools for diversification and portfolio composition, leveraging the composability typical of DeFi.

Additionally, Solana positions itself as an ecosystem ready to absorb a growing portion of volumes and traditional operators in search of efficiency and global openness.

Strategic considerations and future prospects

The opening of tokenized trading marks a substantial evolution in the integration between conventional and digital finance. On one hand, it will facilitate adoption among new users, interested in the convenience and possibilities offered by decentralized markets.

On the other hand, we might witness a growing blend between institutional operators and crypto innovators whose interests converge on the transparency and accessibility offered by blockchains.

The next phases will focus on completing the functionalities in wallets like Phantom and expanding the number of available assets.

It will also be crucial to monitor regulatory reactions and the level of adoption among institutional investors, which determine the sustainability of this new frontier of digital finance. The tokenized stock trading on Kraken, Bybit, and in the Solana DeFi ecosystem represents a decisive step towards the integration between financial worlds, making traditional stocks truly global and always accessible.

This innovation promises greater opportunities, liquidity, and transparency, offering a concrete solution to those looking to the future of investments by leveraging the potential of blockchain.

Continuing to follow these developments will allow us to anticipate the next evolutions of a constantly changing finance.