Kamino, a Solana-based DeFi app, has integrated tokenized stocks, allowing users to utilize them as collateral. This development could attract additional liquidity.
Integration of xStocks and Its Significance
The integration of tokenized stocks into Solana's DeFi ecosystem marks a significant improvement. This step promotes the tokenization of real assets, which may attract additional liquidity to the platform.
Details of the Integration
The integration allows Kamino users to utilize tokenized stocks as collateral for borrowing. These stock tokens are managed by Backed Finance, compliant with EU MiFID II standards. Users on the platform can trade and leverage through markets like Kraken and Coinbase.
> "The vision is that you can buy an xStock on Kraken, you can withdraw it, and then you can deposit on Coinbase or you can deposit on Orca, you can leverage it on Kamino." - Adam Levi, Co-founder, Backed Finance
Potential of Tokenized Stocks in DeFi
The introduction of xStocks as collateral can enhance liquidity in Solana's DeFi market, where the total value locked is approximately $8.56 billion. Tokenized stocks provide users with diverse trading options. This integration also opens new avenues for technological, financial, and regulatory advancements in tokenization.
The integration of xStocks in Kamino may represent a pivotal moment for tokenization of real-world assets in DeFi, providing users with broader access to new investment opportunities.
