XStocks expanded to Ethereum Tuesday, introducing approximately 60 tokenized stocks from major corporations including Nvidia, Amazon, Tesla, Meta and Walmart to the blockchain network. The tokenized stock platform, operated by real-world asset tokenization firm Backed Finance, previously launched on Solana, BNB Chain and Tron networks before making its Ethereum debut.
What to Know:
- XStocks launched 60 tokenized stocks on Ethereum including major tech companies like Nvidia, Tesla, Amazon and Meta
- Backed Finance operates the platform and has partnerships with crypto exchanges Kraken and Bybit to host the product
- Ethereum dominates decentralized finance with $90.8 billion total value locked, representing 60% of all blockchain TVL
Platform Expansion Strategy
Backed Finance selected Ethereum for its widespread adoption among smart contract networks. A Kraken representative explained the strategic decision, noting that "Ethereum is one of the world's most widely adopted smart contract networks — and xStocks were built to meet users where they already are." The company has established partnerships with major cryptocurrency exchanges including Kraken and Bybit to distribute its tokenized equity products.
Ethereum maintains its position as the dominant blockchain in decentralized finance across all networks.
The platform recorded $90.8 billion in total value locked Monday, capturing 60% of the overall TVL across all blockchain networks. This market leadership influenced XStocks' decision to expand beyond its initial launch platforms.
Recent months have seen increased activity in Ethereum-based tokenized stock trading. Gemini introduced tokenized stock trading within the Ethereum ecosystem in June 2025. eToro reportedly explores launching similar tokenized stock offerings on the Ethereum network, indicating growing institutional interest in blockchain-based equity products.
Understanding Tokenized Assets and Market Dynamics
Real-world asset tokenization creates digital representations of traditional financial or physical assets on blockchain networks. The process applies to various asset classes including stocks, commodities and typically illiquid investments like real estate. These digital tokens operate on blockchain infrastructure while representing ownership or exposure to underlying traditional assets.
Supporters argue tokenized stocks democratize equity investing by eliminating regulatory barriers and operational hurdles. The technology potentially provides broader access to traditional financial markets through cryptocurrency infrastructure. However, legal experts highlight significant concerns regarding investor protections and regulatory compliance.
Tokenized equities exist in a complex legal environment with unclear regulatory frameworks. Legal professionals warn that tokenized stocks may not provide investors the same legal protections as direct stock ownership.
Token holders typically lack direct claims on company assets or voting rights associated with traditional equity ownership.
Financial regulators and traditional stock exchanges increasingly scrutinize the tokenized stock sector. The Securities and Exchange Commission and other regulatory bodies face pressure to implement stricter oversight of tokenized equity products. This regulatory uncertainty creates ongoing challenges for firms operating in the tokenized stock space.
Despite regulatory headwinds, fintech and cryptocurrency companies continue expanding tokenized equity offerings. Robinhood launched a dedicated blockchain platform June 30 to facilitate tokenized stock trading specifically for European markets. This expansion demonstrates continued industry confidence in tokenized equity products despite regulatory uncertainties.
Market Size and Growth Potential
Current market data reveals the tokenized stock sector remains relatively small within the broader tokenized asset ecosystem. Analytics platform RWA.xyz reports tokenized stock market capitalization at $342 million currently. This figure represents just 1.2% of the overall $27.9 billion tokenized real-world asset market capitalization.
The tokenized alternative funds sector shows stronger growth momentum with recent expansion. Related tokenized alternative funds jumped 47% to $1.7 billion over a 30-day period, indicating broader investor interest in blockchain-based traditional asset exposure.
Closing Thoughts
XStocks' Ethereum launch represents continued expansion of tokenized equity products despite regulatory uncertainties and legal complexities. The platform's multi-chain strategy and exchange partnerships position it for potential growth within the developing tokenized asset sector, though the market remains a small fraction of overall blockchain-based real-world asset tokenization.