Backed Finance has unveiled a groundbreaking cross-chain bridge named xBridge, aimed at facilitating the seamless transfer of tokenized stocks across multiple blockchains while maintaining synchronization with stock splits, dividends, and other corporate actions. The announcement was made during the Solana Breakpoint conference and highlighted the collaboration with Chainlink.
xBridge is designed to enable users to transfer tokenized equities, referred to as xStocks, between the Ethereum and Solana blockchains. These xStocks are uniquely tied to real-world stocks or exchange-traded funds (ETFs) on a 1:1 basis, effectively mirroring their behavior in the digital realm, including their response to corporate events.
Employing Chainlink’s Cross-Chain Interoperability Protocol (CCIP), xBridge ensures that when tokens transition from one blockchain to another, their connection to the underlying assets and their behavioral parameters remain intact. This feature is a significant advancement, addressing a longstanding gap in the cryptocurrency landscape where traditional finance assets were often limited by restrictive access.
Yotam Katznelson, the CTO and COO of Backed, emphasized the importance of this development, stating, “For years, crypto had either permissionless native digital assets or RWAs closed behind walled gardens. With xStocks, we brought tokenized equities into DeFi permissionlessly, and now with xBridge, we are completing the loop: tokenized stocks can finally flow as freely as any other crypto asset.”
In practice, xStocks leverage different methodologies on the two blockchains to ensure accurate balance updates corresponding to corporate actions. On Ethereum, balance adjustments utilize an updatable multiplier, while on Solana, they rely on the Token2022 standard combined with automatic rebasing. Regardless of the blockchain, these mechanisms ensure that token balances accurately reflect events such as stock splits and dividend payments, even when transitioning between chains.
Currently, Backed’s xStocks have made their debut on various cryptocurrency trading platforms, including prominent exchanges. Notably, Kraken recently acquired Backed Finance, positioning the company for further growth and innovation in the sector.
As the xBridge enters its pilot phase, Backed Finance has plans to expand compatibility to additional blockchains, including Mantle and TRON, in the coming weeks, further enhancing the interoperability of tokenized assets in the rapidly evolving decentralized finance ecosystem.
