Backed Finance announced the launch of tokenized stocks for 60 well-known companies and ETFs as part of the integration process between traditional finance and cryptocurrency.
What Are Tokenized Stocks?
Tokenized stocks are digital representations of traditional securities like company shares existing on a blockchain. Each token represents ownership of an underlying asset, bridging the gap between the regulated world of stocks and decentralized finance (DeFi). Key characteristics include:
* Blockchain technology: Ensures security and transparency. * Fractional ownership: Allows the purchase of portions of shares, making high-priced stocks more accessible. * Global accessibility: Trading is not limited by markets or time constraints. * Collateral potential: Can be used in decentralized lending protocols.
Who is Backed Finance?
Backed Finance is focused on bridging traditional finance with the blockchain realm. Their mission is to issue tokenized versions of real-world assets, unlocking new possibilities for investors. They adhere to regulatory compliance, ensuring their digital assets are backed by the respective physical assets, distinguishing them in the digital asset space.
Impact on DeFi and Stock Accessibility
Tokenized stocks are already available on major crypto exchanges such as Bybit and Kraken, marking a significant step towards the mainstream adoption of tokenized assets. These stocks provide new opportunities:
* Enhanced collateral options: For instance, tokenized shares of Apple can be used as collateral for crypto loans. * 24/7 trading: Tokenized stocks are available for trading without time restrictions. * New financial products: Combining tokenized stocks with existing DeFi protocols opens the path for creating innovative financial instruments.
The launch of tokenized stocks by Backed Finance represents a significant step towards the integration of traditional finance and the crypto world, offering new trading and investment opportunities. This initiative paves the way for the coexistence of traditional financial instruments and digital assets.
