Tokenized Stocks on X Layer See Explosive Growth
Tokenized stocks issued by xStocks on the X Layer blockchain have achieved a market capitalization of $172.8 million, marking a significant 187.2% increase in just one month. This rapid expansion represents a growth trajectory that many decentralized finance (DeFi) protocols aspire to, especially for a platform that was virtually non-existent on the chain three months prior.
xStocks Marketplace Offers Wide Range of Tokenized Assets
The xStocks marketplace, developed by Backed Finance and operating on OKX’s Ethereum Layer 2 blockchain, now provides access to over 900 tokenized U.S. equities and exchange-traded funds (ETFs). The platform officially launched on X Layer on June 15, following a partnership announcement earlier that month.
How Tokenized Stocks Work
xStocks enables users to trade tokenized versions of U.S. stocks and ETFs. Each token is backed 1:1 by the actual underlying security, which is held in regulated custody. These are not synthetic derivatives or algorithmic representations; rather, they function as tracker certificates offering economic exposure to the real asset without granting legal ownership rights, such as voting privileges.
Portfolio Composition and Diversification
The xStocks portfolio is structured with approximately 88% equities and 12% ETFs. The platform incorporates diversification measures, ensuring that no single asset constitutes more than about 9% of the total portfolio. Among the leading positions, the tokenized counterpart to MicroStrategy (MSTRx) holds a market capitalization of approximately $28.6 million, with Circle’s token (CRCLx) also featuring prominently.
24/7 Trading and Lower Costs
Trading on the xStocks platform is facilitated through the OKX Wallet, which contributes to lower transaction costs and enables round-the-clock market access. This contrasts with traditional U.S. equity markets, which operate for limited hours on weekdays.
Broader xStocks Platform Performance
While the xStocks marketplace on X Layer is a recent development, the broader xStocks platform, launched on June 30, 2025, has expanded across multiple blockchains. Since its inception, cumulative trading volumes have reached between $35 billion and $40 billion across approximately 800 assets.
Backed Finance and Regulatory Framework
Backed Finance, the Swiss-based entity behind xStocks, operates within a regulated framework, with assets held in regulated custody. Backed Finance is affiliated with Payward, the parent company of Kraken.
Understanding the Risks
The risks associated with tracker certificates are clearly defined. Users gain price exposure but do not acquire shareholder rights. Potential shifts in regulatory frameworks, particularly as more jurisdictions examine tokenized securities, pose a risk. Furthermore, the 1:1 backing model’s integrity depends on the continued solvency and transparency of the custodial and issuance infrastructure. Backed Finance operates under Swiss regulatory oversight.
