XStocks Reaches $10 Billion Milestone as Tokenized Equities Accelerate Amid Regulatory Uncertainty
In just over four months since its inception, xStocks—a joint initiative by real-world asset (RWA) tokenization firm Backed and cryptocurrency exchange Kraken—has exceeded $10 billion in cumulative trading volume. This rapid growth underscores a surge in investor interest toward tokenized equity products, even as the regulatory framework surrounding them remains ambiguous.
Launched earlier this year, xStocks offers tokenized versions of over 60 well-known stocks and exchange-traded funds (ETFs), including major names such as Tesla, Amazon, Nvidia, and Meta Platforms. Each token on the platform is backed on a 1:1 basis by its corresponding real-world asset, ensuring that every digital asset is fully collateralized by its traditional counterpart. Backed is responsible for issuing these tokens in collaboration with Kraken, providing a seamless bridge between traditional finance and blockchain infrastructure.
Operating across multiple major blockchain networks—including Ethereum, Solana, BNB Chain, and Tron—xStocks aims to maximize accessibility and interoperability. By integrating with several blockchain ecosystems, the platform ensures that a broader range of users can engage with tokenized equity products without being limited by network restrictions.
Beyond its total trading volume, xStocks has reported nearly $2 billion in onchain transaction activity, involving over 45,000 unique onchain wallet holders. The platform currently manages around $135 million in assets under custody, further highlighting the growing demand for decentralized investment options.
XStocks is not alone in this emerging sector. Other companies—including Securitize and Robinhood Markets—have also entered the tokenized equity space, offering digital representations of real-world assets. Securitize, for instance, facilitates the issuance of tokenized shares and funds directly on blockchain networks. Meanwhile, Robinhood has initiated the rollout of stock tokens in selected jurisdictions, signaling broader retail interest in this innovative financial product.
Despite this momentum, the legal status of tokenized stocks remains murky. Industry experts caution that most stock tokens do not represent direct ownership of the underlying assets. Instead, these tokens act as derivative instruments, issued by intermediaries that hold the actual shares. According to John Murillo, Chief Business Officer at fintech firm B2Broker, “Investors should be aware that they are not purchasing the real shares themselves, but are acquiring tokens that may entitle them to benefits tied to the performance of the actual assets.”
This distinction becomes especially important in the event of regulatory scrutiny or legal disputes. The lack of standardized legal frameworks governing tokenized securities means that investors must rely on the credibility and transparency of the issuing platforms. Nonetheless, interest in these products continues to rise, driven by the promise of fractional ownership, 24/7 trading, and global accessibility.
Data from the industry suggests that the current onchain value of tokenized public equities—excluding trading volume—stands at approximately $666 million. This indicates a strong foundational base, even as the broader market continues to evolve.
Tokenized equities represent a significant step in the convergence of traditional finance and decentralized technologies. By offering exposure to conventional assets within a blockchain-based framework, platforms like xStocks are reshaping how investors think about portfolio diversification, asset accessibility, and market participation.
The appeal of tokenized stocks lies in their ability to democratize investing. Through fractional ownership, even retail investors with limited capital can gain exposure to high-value assets like Amazon or Meta. Additionally, blockchain’s inherent transparency and immutability provide a level of auditability and trust often lacking in legacy financial infrastructure.
Yet, challenges remain. Regulatory bodies around the world have yet to issue clear guidelines on how tokenized securities should be classified, taxed, or enforced under existing laws. This uncertainty creates both risk and opportunity: while early adopters may benefit from high growth potential, they also face ambiguity regarding investor protections and legal recourse.
Looking ahead, the success of xStocks and similar platforms will likely depend on their ability to navigate evolving legal landscapes while maintaining user trust and operational integrity. Strategic partnerships with traditional financial institutions and proactive engagement with regulators could help legitimize the sector and promote wider adoption.
Furthermore, innovations in smart contract technology may enable even more sophisticated financial products, such as programmable dividends or automated compliance features. As infrastructure matures, we can expect tokenized equities to move from a niche offering to a core component of the digital asset ecosystem.
In summary, xStocks’ rapid ascent to $10 billion in trading volume reflects a broader transformation in how investors interact with traditional assets. By leveraging blockchain technology, the platform is helping to usher in a new era of financial inclusion and asset tokenization—one that holds the potential to redefine capital markets for years to come.