Launch of xStocks’ Tokenized Equities on Solana Has Several Implications Across Financial Markets

xStocks, a tokenized equities platform developed by Backed in partnership with Kraken and the Solana Foundation, launched on the Solana blockchain in May 2025, with trading going live on June 30, 2025. The platform enables 24/7 trading of tokenized U.S. stocks and ETFs, including major names like Apple ($APPLx), Tesla ($TSLAx), Nvidia ($NVDAx), and ETFs like SPY ($SPYx), for non-U.S. investors in regions such as Europe, Latin America, Africa, and Asia.

These assets, issued as SPL tokens, are backed 1:1 by real shares held by Backed Finance, ensuring price parity with traditional markets and allowing redemption for cash value. Solana was chosen for its high performance, low latency, and scalability, enabling instant settlement and integration with DeFi protocols like Kamino, Raydium, and Jupiter for uses such as collateral or liquidity provision.

Bybit joined the xStocks Alliance, listing over 60 tokenized assets on its Spot platform. The initiative aims to bridge traditional and decentralized finance, offering borderless, low-cost access to global markets. Kraken and Backed plan to expand xStocks to other blockchains and exchanges, with DeFi Development Corp. ($DFDVx) being the first U.S.-listed crypto treasury firm tokenized on the platform.

This move reflects growing interest in real-world asset (RWA) tokenization, with projections estimating the market could reach $18.9 trillion by 2033. However, regulatory compliance remains a focus, as Kraken is working with global regulators to ensure legal access, and past attempts by exchanges like Binance faced regulatory challenges. Posts on X highlight enthusiasm for xStocks’ role in creating “internet capital markets,” though some question whether tokenized equities will disrupt traditional markets or remain niche.

Non-U.S. investors in regions like Europe, Latin America, Africa, and Asia gain 24/7 access to tokenized U.S. stocks and ETFs (e.g., $APPLx, $TSLAx, $SPYx). This lowers barriers for retail investors, enabling participation in global markets without traditional brokerage accounts or geographic restrictions. Tokenized assets as SPL tokens on Solana can be used in DeFi protocols (e.g., Kamino, Raydium, Jupiter) for collateral, lending, or liquidity provision. This bridges traditional finance (TradFi) and decentralized finance (DeFi), creating new financial products and yield opportunities.

Solana’s high throughput and low transaction costs enable instant settlement and reduce fees compared to traditional markets. This could pressure legacy financial systems to innovate or lose market share. While Kraken emphasizes compliance, tokenized equities face scrutiny, as seen in past regulatory pushback against similar offerings (e.g., Binance’s tokenized stocks). Jurisdictional differences may limit adoption or create legal risks for platforms and investors.

The projected $18.9 trillion RWA tokenization market by 2033 signals significant growth potential. xStocks’ expansion to other blockchains and exchanges, alongside Bybit’s involvement, intensifies competition among platforms like Coinbase or Binance to capture this market. Tokenized equities could enhance liquidity through 24/7 trading and DeFi integration but risk fragmentation if multiple platforms tokenize the same assets. Volatility in crypto markets may also affect tokenized asset stability, despite 1:1 backing.

X posts suggest excitement for “internet capital markets,” but skepticism persists about whether tokenized equities will disrupt TradFi or remain a niche product. Mainstream adoption hinges on user trust, regulatory clarity, and seamless user experience. Overall, xStocks on Solana could reshape how investors access and interact with equities, but success depends on navigating regulatory hurdles, scaling infrastructure, and proving long-term value over traditional systems.