Kraken and Backed have announced the launch of xStocks on the BNB Chain, providing users with access to tokenized US stocks.
How xStocks Work on BNB Chain
Each xStock is backed 1:1 by the actual US stock it represents and issued as a BEP20 token. These tokens are available to trade 24/7, offering more flexibility than traditional stock markets.
Backed handles custody and regulatory aspects, ensuring that each token corresponds directly to a real stock held in trust. Kraken, on the other hand, provides a trusted platform for trading and liquidity, resulting in a frictionless experience where users gain exposure to US equities without dealing with legacy systems or intermediaries.
Why It Matters for Crypto and DeFi
This move by Kraken and Backed blurs the lines between traditional and decentralized finance. Tokenized US stocks lower the barrier for retail investors globally, especially in regions where direct access to the US stock market is limited.
Moreover, integrating tokenized equities with DeFi platforms unlocks the potential for use cases like lending, borrowing, or staking using stocks as collateral — an idea that would be unthinkable in traditional finance.
Conclusion
xStocks on BNB Chain represents a significant step towards financial inclusivity and innovation in the cryptocurrency sphere.
The launch of xStocks is an important move towards integrating traditional finance with the world of decentralized finance.
