XStocks, a tokenized stock initiative under the umbrella of Backed Finance, has officially announced its launch on the Ethereum blockchain, featuring around 60 tokenized stocks from major companies including NVIDIA, Amazon, Tesla, Meta, and Walmart. Prior to this rollout, xStocks had made its debut on platforms like Solana, BNB Chain, and Tron.
The venture is backed by Backed Finance, a company specializing in real-world asset (RWA) tokenization, which has forged partnerships with several cryptocurrency exchanges such as Kraken and Bybit to implement its offerings. A representative from Kraken emphasized the significance of Ethereum’s adoption, stating, “Ethereum is one of the world’s most widely adopted smart contract networks — and xStocks were built to meet users where they already are.”
Ethereum, recognized as the leader in decentralized finance (DeFi), boasts a total value locked (TVL) of approximately $90.8 billion, which accounts for 60% of the overall TVL across all blockchain platforms. Notably, in June 2025, Gemini initiated tokenized stock trading on Ethereum, while eToro has also shown interest in launching similar services on the platform.
Tokenization of real-world assets involves creating a digital form of traditional financial or physical assets on a blockchain. This can include stocks or commodities, with some underlying assets being illiquid, such as real estate. Recent reports highlight a surge in interest, noting that tokenized alternative funds have experienced a 47% increase, reaching a total of $1.7 billion in just 30 days.
Despite its growing popularity, the tokenized stock space is fraught with controversy. Advocates argue that this technology democratizes access to equity investments by eliminating barriers and regulatory complications. However, it is crucial to note that tokenized equities exist within a legal gray area. Legal experts express concerns that these tokenized stocks might not provide the same protections as traditional stock ownership, potentially lacking direct claims on company assets and voting rights.
In light of these challenges, stock exchanges and global regulatory bodies are increasingly scrutinizing the tokenization trend, urging for more stringent oversight from entities like the U.S. Securities and Exchange Commission (SEC). Nevertheless, the momentum in the fintech and crypto sectors continues, as companies explore their tokenized equity offerings. For instance, on June 30, Robinhood launched a dedicated blockchain to enable tokenized stock trading in Europe.
According to analytics platform RWA.xyz, the market capitalization for tokenized stocks has now reached $342 million, representing a modest 1.2% of the overall tokenized RWA market cap, which stands at $27.9 billion. As the landscape evolves, experts and enthusiasts continue to debate the future implications of tokenized stocks within the broader context of both finance and technology.
