Backed Finance has taken a significant step in the world of decentralized finance by officially registering in Switzerland. This strategic move enables the company to issue xStocks, which are digital representations of traditional stocks, including popular names like Tesla and Nvidia. The document provides a justification for the fact that this decision allows them to avoid the complexities of whitelisting tokenized shares.
Importance of a Permissionless Approach
Cofounder Adam Levi highlighted the importance of a permissionless approach in fostering greater adoption within the decentralized finance sector. By allowing users to trade digital stocks without the need for intermediaries, Backed Finance aims to democratize access to investment opportunities.
Growing Interest in xStocks
Currently, xStocks have garnered attention, attracting 30,300 unique holders, with Tesla tokens emerging as the most sought-after option. This growing interest underscores the potential of digital assets in reshaping investment landscapes.
Competitive Positioning Against Established Platforms
With this development, Backed Finance positions itself as a competitive player against established platforms such as:
- Robinhood
- Securitize
Appeal to a New Generation of Investors
The ability to trade digital representations of stocks could appeal to a new generation of investors looking for innovative ways to engage with the stock market.
Currently, Kyle Samani, co-founder of Multicoin Capital, continues to emphasize the advantages of Solana's Digital Asset Treasuries (DATs) over Bitcoin, as discussed in his recent podcast appearance. For more details on his insights and the implications of Forward Industries' $165 million PIPE raise, check out the full article here.
