For years, crypto investors have hoped to combine traditional finance with blockchain technology. They have talked about turning real-world assets, especially U.S. stocks, into digital tokens. Now, that dream is here. Starting July 1, 2025, Kraken and Bybit launched xStocks, which offers over 60 tokenized U.S. stocks and ETFs on the Solana blockchain. In partnership with Backed Finance, people worldwide can buy digital tokens representing shares of big companies like Apple, Tesla, and Nvidia. These tokens are backed 1:1 by actual stocks, connecting traditional stock markets with decentralized finance (DeFi).
What are xStocks?
xStocks are tokenized representations of publicly traded stocks that exist on a blockchain. They are synthetic assets designed to mimic the value and price movement of real-world stocks like Apple (AAPL), Tesla (TSLA), or NVIDIA (NVDA), without requiring ownership of the actual underlying shares.
These xStocks offer a novel way to engage with traditional equities through blockchain technology, providing flexibility and broader access to global investors. Tangem cold wallets support SPL tokens like xStocks, offering a user-friendly and safe solution for managing digital assets.
Key Characteristics of tokenized assets:
- Synthetic Exposure: xStocks mimic the price of real stocks but do not confer ownership rights, voting power, or dividend entitlements.
- Blockchain-Based: Issued on blockchain networks like Solana, enabling 24/7 trading and integration with decentralized finance (DeFi) applications.
- Custodial Backing: Platforms like Kraken partner with entities such as Backed Finance to ensure that each xStock token is backed 1:1 by the corresponding real-world stock held in custody.
- Global Accessibility: Designed to provide international investors, especially those outside the U.S., access to U.S. equities without traditional brokerage accounts.
How Do xStocks Work?
- Issuance and Backing
A regulated entity, such as Backed Finance, holds the actual shares of the underlying assets. A corresponding xStock token is minted on the Solana blockchain for each share held, ensuring a 1:1 backing.
- Trading and Settlement
xStocks can be traded on platforms like Kraken and Bybit, allowing users to buy, sell, and hold these tokens. Trading is also available 24 hours a day, five days a week, with plans to extend to full 24/7 availability. Transactions are settled instantly on-chain, eliminating the delays associated with traditional T+2 settlement cycles.
- Integration with DeFi
Users can withdraw xStocks to compatible on-chain wallets, granting them complete control over their assets. xStocks can be utilized within decentralized finance ecosystems, serving as collateral for lending protocols or participating in liquidity pools.
Top 5 Tokenized U.S. Equities on Solana
An in-depth look at five of the most prominent xStocks—tokenized representations of U.S. equities—available on platforms like Kraken and Bybit. These tokens are issued on the Solana blockchain and are fully backed 1:1 by the underlying shares held by regulated custodians through Backed Finance.
- Apple (AAPLx)
AAPLx provides tokenized exposure to Apple Inc., allowing investors to engage with one of the world’s leading technology companies.
- Trading Platforms: Available on Kraken and Bybit, offering 24/5 trading access.
- Price Snapshot: As of July 1, 2025, AAPLx is trading at approximately $201.98.
- Tesla (TSLAx)
TSLAx offers tokenized access to Tesla Inc., known for its innovations in electric vehicles and clean energy.
- Trading Platforms: Listed on Kraken and Bybit, facilitating 24/5 trading.
- Price Snapshot: As of July 1, 2025, TSLAx is priced around $326.55.
- Nvidia (NVDAX)
NVDAX represents tokenized shares of Nvidia Corporation, a leader in graphics processing and AI technologies.
- Trading Platforms: Available on Kraken and Bybit, providing global access.
- Price Snapshot: As of July 1, 2025, NVDAX is trading at approximately $159.60.
- Coinbase (COINX)
COINX provides tokenized exposure to Coinbase Global Inc., a major cryptocurrency exchange platform.
- Trading Platforms: Listed on Kraken and Bybit, enabling 24/5 trading opportunities.
- SPDR S&P 500 ETF (SPYx)
SPYx represents tokenized shares of the SPDR S&P 500 ETF Trust, providing broad exposure to the U.S. equity market.
- Trading Platforms: Available on Kraken and Bybit, with 24/5 trading access.
These tokenized equities offer a novel way to engage with traditional equities through blockchain technology, providing flexibility and broader access to global investors.
Advantages of tokenized equities
- Global Accessibility: Provides non-U.S. investors with exposure to U.S. equities without the need for traditional brokerage accounts.
- Fractional Ownership: Enables investment in high-priced stocks with as little as $1, democratizing access to financial markets.
- Enhanced Liquidity: Integration with DeFi platforms allows for increased liquidity and innovative financial products.
- Cost Efficiency: Reduces trading fees and eliminates intermediaries, leading to more cost-effective transactions.
Considerations and risks of tokenized assets
- Regulatory Restrictions: xStocks are not available to U.S. residents or persons, and their availability is subject to regional regulations.
- Lack of Shareholder Rights: Holders of xStocks do not possess voting rights or direct claim to dividends; instead, dividends are automatically reinvested into additional tokens.
- Counterparty Risk: Reliance on the issuing entity for token backing introduces counterparty risk, necessitating trust in the issuer’s solvency and compliance.
How to secure your tokenized equities
Tangem Wallet provides a secure and easy way to store xStocks, which are tokenized traditional stocks on the Solana blockchain. The wallet is a Swiss-designed, offline cold wallet with a secure chip that keeps private keys safe by never exposing them to the internet. It’s the size of a credit card and uses NFC technology, so you can simply tap your phone to manage your assets through the Tangem app, without cables or batteries. Support for over 16,000 digital assets across various blockchains, including Solana, makes it compatible with xStocks.
Frequently Asked Questions About xStocks
Where can I buy xStocks?
You can buy xStocks on select cryptocurrency exchanges such as Kraken and Bybit. These platforms allow global users to trade tokenized U.S. stocks 24/5 without needing a traditional brokerage account.
Are xStocks backed by real stocks?
Yes. Each xStock is fully collateralized and backed 1:1 by real shares held by a regulated custodian, such as those working with Backed Finance.
Can I store xStocks in a hardware wallet?
Absolutely. xStocks are issued on the Solana blockchain, making them compatible with self-custody wallets like Tangem. Tangem’s NFC-enabled hardware wallet offers secure, offline storage and eliminates the need for seed phrases.
Do I earn dividends from xStocks?
No, xStocks do not grant shareholder rights such as voting or dividends. In some cases, dividends may be automatically reinvested into the token value, but this depends on the issuing platform.
Are xStocks legal in the U.S.?
Due to regulatory restrictions, xStocks are not currently available to U.S. persons or residents. However, they are accessible in many other jurisdictions.
What is the minimum investment for xStocks?
xStocks offer fractional ownership, allowing investors to purchase portions of a stock. This means you can start investing with a minimal amount, making it accessible to a broader audience.
Can I redeem xStocks for actual shares?
While xStocks are backed 1:1 by real shares held by custodians like Backed Finance, they are designed for digital trading and DeFi applications. Redemption for actual shares may not be directly available to individual investors.
Are xStocks compatible with DeFi platforms?
Yes, xStocks are issued on the Solana blockchain, making them compatible with various DeFi protocols. Investors can use xStocks for lending, collateral, and other DeFi activities.
How do xStocks differ from traditional stocks?
xStocks are digital tokens representing traditional equities, offering benefits like 24/5 trading, fractional ownership, and integration with DeFi platforms. However, they do not confer voting rights or direct dividend payments.
What are the trading hours for xStocks?
xStocks can be traded 24 hours a day, five days a week, providing greater flexibility than traditional stock markets.
Are there any geographical restrictions for trading xStocks?
Yes, xStocks are not available to residents of certain countries, including the United States, Australia, Canada, the EU, and the UK. It’s essential to check the availability in your jurisdiction before trading.
Can I use xStocks as collateral?
Yes, xStocks can be used as collateral within compatible DeFi platforms, allowing investors to leverage their holdings for various financial activities.
How are xStocks taxed?
Taxation of xStocks varies by jurisdiction. Investors should consult with a tax professional to understand the implications in their specific region.
What security measures are in place for xStocks?
xStocks are secured through blockchain technology, and platforms like Kraken and Bybit implement robust security protocols. Additionally, using hardware wallets like Tangem can enhance the security of your holdings.
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