XStocks, the tokenized equity platform from tokenization firm Backed and crypto exchange Kraken, has surpassed $10 billion in total transaction volume. This milestone was reached just over four months after its launch, the companies reported. This rapid XStocks tokenized stocks growth underscores the growing interest in tokenized investment products.
The platform debuted this year with over 60 tokenized equities. These include tech giants like Nvidia, Amazon, Tesla, and Meta Platforms, alongside several exchange-traded funds (ETFs). The $10 billion total transaction volume is complemented by nearly $2 billion in on-chain transaction activity. Furthermore, XStocks reports over 45,000 on-chain holders and $135 million in assets under management (AUM).
What is driving XStocks adoption despite the legal gray area?
XStocks’ success stems from its accessibility and backing. Each xStock token is fully backed 1:1 by the underlying equity or ETF, issued by Backed in partnership with Kraken. Likewise, the platform operates across multiple blockchain ecosystems, including Ethereum, Solana, BNB Chain, and Tron. This significantly broadens its reach to different user types.
However, this growth is occurring despite regulatory uncertainty. Experts like John Murillo of B2Broker note the sector operates in a “legal gray area.” Murillo clarifies that investors own tokens representing exposure to the asset, not the actual shares. These tokens are issued by intermediaries, which is a crucial distinction. Other players like Securitize and Robinhood are also entering this market.
The XStocks tokenized stocks growth demonstrates strong demand for real-world assets (RWAs) on-chain. Although regulation remains a challenge, the trend is clear. Industry data indicates the total value of tokenized public stocks held on-chain is $666 million. This figure, which excludes trading volume, suggests ample expansion potential for platforms like XStocks.
