In a significant advancement for the world of tokenized equities, Backed has partnered with Chainlink to introduce xBridge, an innovative bridge that facilitates the transfer of tokenized stocks between the Ethereum and Solana blockchains. This development marks a pivotal moment in the evolution of cross-chain finance, as xBridge ensures that crucial corporate actions—such as dividends and stock splits—are preserved during transfers.
The integration of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) underpins this new functionality, allowing users to execute transactions seamlessly between the two popular blockchain ecosystems. The pilot launch of xBridge is already live, with plans for a comprehensive rollout anticipated in the near future. Backed has expressed intentions to expand support to other blockchains, further broadening the accessibility of its offerings.
Yotam Katznelson, CTO and COO of Backed Finance, emphasized the effort taken to securely introduce tokenized equities to both Solana and Ethereum, highlighting the importance of interconnecting these two ecosystems. By ensuring that traditional stock characteristics remain intact during the transfer process, xBridge completes the loop for tokenized equities, enabling their efficient mobility between networks.
Chainlink’s Chief Business Officer, Johann Eid, praised the initiative, stating that the integration allows xStocks to transfer across multiple chains while maintaining high levels of security, reliability, and compliance. This feature is crucial for developing a globally connected financial ecosystem, making tokenized equities more accessible to a wider audience.
On the Solana blockchain, xStocks utilize the Token2022 standard, incorporating a multiplier-based “Shares Model” alongside automatic rebasing at predefined activation times. In contrast, Ethereum employs a custom rebasing architecture that tracks shares internally and scales displayed balances through an updatable multiplier.
Eid characterized this collaboration as a significant leap toward establishing a cohesive cross-chain marketplace where real-world assets can be efficiently transacted on a large scale, all while ensuring institutional-level security. As the financial landscape evolves, the launch of xBridge is expected to play a crucial role in the ongoing integration of blockchain technology and traditional finance.
