Backed Finance Launches xStocks Offering on Ethereum
Backed Finance, a company specializing in real-world asset (RWA) tokenization, has launched its xStocks product on the Ethereum blockchain. The move brings approximately 60 tokenized stocks to Ethereum, including major firms like NVIDIA, Amazon, Tesla, Meta, and Walmart, according to the firm's announcement on Tuesday.
Bringing Traditional Stocks to DeFi
Before its introduction on Ethereum, xStocks had already debuted on other platforms outside the Ethereum ecosystem. Backed Finance has worked with major crypto exchanges, such as Kraken and Bybit, to make its products accessible to users worldwide. A representative from Kraken noted that xStocks were designed to align with users already active on Ethereum, referencing the network's broad adoption and vibrant decentralized finance (DeFi) landscape.
Ethereum continues to be a leader in DeFi, with a total value locked of $90.8 billion as of Monday. This figure represents about 60% of the total value secured across all blockchains, underlining Ethereum's dominance in the sector.
Market Growth and Regulatory Scrutiny
The launch contributes to steady growth in the tokenized equities space. Earlier in June 2025, Gemini introduced tokenized stock trading on Ethereum, while eToro is reportedly preparing a similar service. The ongoing expansion reflects rising interest from both fintech and crypto firms.
RWA tokenization converts traditional financial or physical assets, like equities or commodities, into digital tokens on a blockchain. Proponents claim that tokenized stocks can broaden access to global equities and reduce traditional market barriers. However, legal experts caution that these instruments may not give investors the same rights or protections as direct stock ownership�such as claims on company assets or voting privileges.
Regulators have taken notice. Stock exchanges and authorities worldwide, including the US Securities and Exchange Commission (SEC), are calling for stricter oversight of tokenized stocks to ensure investor protection and market stability.
Outlook for Tokenized Asset Markets
Despite regulatory challenges, industry initiatives continue. On June 30, Robinhood announced its own blockchain to facilitate asset tokenization. Still, the tokenized stock market's cap remains modest. According to RWA.xyz, tokenized stocks represent only $342 million, or 1.2% of the total $27.9 billion tokenized RWA market capitalization.
- xStocks by Backed Finance launches on Ethereum, featuring 60 tokenized equities
- Partnerships with exchanges like Kraken and Bybit support global access
- Tokenized stock market remains small but is growing alongside DeFi innovation
- Calls for increased regulatory oversight continue amid market expansion
As more platforms integrate tokenized equities, market participants and regulators alike will watch the sector for developments in both adoption and oversight.
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