Tokenized Equity Product xStocks Launches on Ethereum

XStocks, a tokenized stock product owned by Backed Finance, is launching on Ethereum with about 60 tokenized stocks, including NVIDIA, Amazon, Tesla, Meta and Walmart, according to an announcement on Tuesday.

Before its debut on Ethereum, xStocks had launched on Solana, BNB Chain and Tron. Behind the platform is Backed Finance, a real-world asset (RWA) tokenization company that has been partnering with crypto exchanges, including Kraken and Bybit, to host its product.

“Ethereum is one of the world’s most widely adopted smart contract networks — and xStocks were built to meet users where they already are,” a Kraken representative told Cointelegraph.

Ethereum is the leader in decentralized finance (DeFi) among all blockchains. It had a $90.8 billion total value locked on Monday, 60% of the overall TVL across all blockchains.

In June 2025, Gemini launched tokenized stock trading in the Ethereum ecosystem, and eToro is said to be exploring the launch of tokenized stocks on Ethereum.

Real-world asset tokenization refers to the process of creating a digital representation of a traditional financial or physical asset, such as a stock or commodity, on a blockchain. In some cases, the underlying asset may be illiquid, like real estate.

Related: Tokenized alternative funds jump 47% to $1.7B in 30 days

Tokenized stock controversy analyzed

Proponents of tokenized stocks say that the technology democratizes equities investing by removing unnecessary hurdles and regulatory siloes.

However, tokenized equities remain in a legal gray area. According to legal experts, tokenized stocks may not confer to the investor the same legal protections as holding the stock itself. In addition, there is no direct claim on company assets or voting rights.

Stock exchanges and global regulators are pushing back against the tokenization trend, calling for tighter oversight from the US Securities and Exchange Commission (SEC) and other watchdogs, particularly when it comes to tokenized stocks.

Despite the pressure, fintech and crypto firms continue to expand tokenized equity offerings. On June 30, Robinhood launched a blockchain to facilitate tokenized stock trading in Europe.

According to analytics platform RWA.xyz, the tokenized stock market capitalization stands at $342 million at this writing, representing just 1.2% of the overall $27.9 billion tokenized RWA market cap.

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