What is xStocks? A simple explanation of its mechanism and use cases.

Investing in US stocks like Apple and Tesla on the Practical Blockchain is becoming a global trend in the web3 space, presenting a new option to "invest in stocks with Tokens."

Behind this, there is a growing interest in the advancement of technology to tokenize real-world assets (RWA) such as stocks, bonds, real estate, artwork, precious metals, and carbon credits.

For example, the world's largest asset management company BlackRock has fully entered the market by issuing a U.S. institutional short-term interest rate-linked fund "BUIDL" as a security token on public blockchains including Ethereum (ETH) in March 2024.

Additionally, the representative U.S. stock app Robinhood has also started offering "tokenized" stock trading linked to stock prices in certain regions and is advancing the provision of non-security tokens with a view to DeFi (Decentralized Finance) support.

In this context, "xStocks" launched by Switzerland's Backed Finance in June 2025 offers over 60 U.S. stocks and ETFs, including Apple, Tesla, and NVIDIA, at a rate of 1 share = 1 Token.

It has attracted attention as a new form of stock investment that can be traded 24 hours a day, 365 days a year (trading is not available on weekends at Kraken), without being restricted by countries or time.

Source: xStocks

In addition to CEXs (centralized exchanges) like Bybit and Kraken (not available for residents of Japan), trading is also possible on DEXs (decentralized exchanges) on Solana (SOL) and the BNB Chain.

The range of available assets includes not only tech companies like Apple and Tesla but also everyday global brands like McDonald's (MCDX), making the diversity of investment options appealing.

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— Bybit (@Bybit_Official) July 8, 2025

📣 $MCDX is officially listed on BybitSpot in collaboration with xStocks!

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In this article, we will explain the mechanism and features of xStocks, how to get started, investment advantages, and points to note in a way that is easy for beginners to understand.

Tokenization of RWA Real World Assets (RWA) refer to tangible and intangible real assets such as stocks, bonds, real estate, artwork, precious metals, and carbon credits. By tokenizing these assets, various benefits can be expected, including the expansion of the DeFi market, increased liquidity of each asset, and reduced costs of financial transactions.

Overview: Start Global Stock Investment from Wallet

xStocks is an asset token that reproduces real US stocks and ETFs, such as Apple and Tesla, on the Practical Blockchain as 1 share = 1 Token. Users can invest in a way that is essentially linked to stock prices through tokens like "AAPLx: Apple stock" and "TSLAx: Tesla stock."

Source: xStocks

As a backing for the Token, Backed Finance has actually acquired and is holding in trust the corresponding shares, and their value and price are linked to the real stock market.

A major feature is that trading can be done 24 hours a day. You are not bound by the operating hours of the US market, allowing transactions on weekends and late at night. You do not need a securities account or dollar funds, and you can buy and sell with stablecoins through cryptocurrency exchanges and DEXs on the Solana Chain and BNB Chain.

No need for a securities account or dollar funds; you can get started with just a wallet──xStocks realizes such a "new style of stock investment."

Features and Mechanism of xStocks

xStocks takes into account the challenges of past stock tokenization and develops a more practical approach from four aspects: regulatory compliance, asset management, technological infrastructure, and convenience.

■Overcoming Regulatory Challenges

The background behind major exchanges like Binance withdrawing from the stock token business was the difficulty of reconciling with securities regulations in various countries (e.g., the U.S. SEC).

In contrast, xStocks legally issues tokens as "Ledger-based securities" based on the DLT Law (Distributed Ledger Technology Act) enacted in Switzerland in 2021.

Electronic Record Transfer Rights refer to the rights of stocks and bonds that are stored as digital records on a Practical Blockchain and can be traded like cryptocurrencies, and they are recognized to have the same legal status as traditional securities.

We provide asset tokens that are price-linked 1:1 with actual stocks in a practical manner that takes this regulation into account.

■Management of Reliable Backing Assets

The actual stocks are acquired by the US securities firm Alpaca Securities and are stored with Swiss trust institutions (such as InCore Bank and Maerki Baumann). This ensures a one-to-one correspondence between the tokens held by the users and the physical stocks.

■Technical Foundation to Ensure Transparency

Chainlink's Proof of Reserve on-chain verification mechanism and real-time data streams provide transparency regarding the consistency between the number of issued Tokens and the actual stock holdings. This system allows anyone to verify that the value of the Tokens is always backed by the actual stocks.

■Improved convenience through multi-chain deployment

xStocks operates across multiple Practical Blockchains such as Ethereum (ETH), Solana, and BNB Chain (BNB). This enables improvements in transaction speed, optimization of fees, and integration with the DeFi (Decentralized Finance) ecosystem.

What is the difference between xStocks and stocks?

So, how does xStocks differ from actual stocks?

■ Framework of "Electronic Securities" based on Swiss DLT Law

xStocks issues tokens that are priced 1:1 with real US stocks and ETFs, but these are not the stocks themselves; they are digital assets that reflect the price. Token holders do not have rights such as voting rights or dividend rights as shareholders of the company.

This mechanism is derived from the issuance of tokens as "electronic record transfer rights (electronic securities)" based on Switzerland's DLT law.

Backed Finance, which provides xStocks, explains as follows on its official website.

• “For each minted Token, Backed buys the underlying asset (1‑to‑1) and holds it via a licensed custodian.”

(For each issued Token, Backed purchases the actual shares on a 1:1 basis, which are stored by a custodian that holds the license.)

• “Operates within a compliant regulatory framework based on the Swiss DLT act.”

(operating under a legal regulatory framework compliant with the Swiss DLT law)

In other words, xStocks are "tokens that can be traded like stocks," yet they are treated legally under a different framework as cryptocurrency or electronic securities, which is the biggest difference from traditional stock investment.

Unapproved in the U.S. - Usage restrictions caused by regulatory differences

The difference between xStocks and stocks goes beyond ownership rights and the framework of the system. The regions where they can be traded and the influence of regulations are also important points to consider.

xStocks is legally issued as an "electronic security" in compliance with Switzerland's DLT law and is available in many countries except the United States. However, residents of the United States are excluded from trading as it has not yet received approval from the SEC (U.S. Securities and Exchange Commission).

In January 2025, BlackRock CEO Larry Fink stated in an interview with CNBC that he hopes the SEC will quickly approve the tokenization of stocks and bonds. He emphasized that tokenization could achieve the democratization of investment and cost reduction.

In addition, BlackRock provided the tokenized money market fund "BUIDL" linked to U.S. Treasury bonds in the same year. This is sold to qualified investors in the U.S. as a security token compliant with SEC Rule 506(c).

In this way, while xStocks is not offered in the United States, it is widely developed in other countries in accordance with each country's legal systems, and the differences in regulatory environments significantly impact its global proliferation.

The Utilization of xStocks Expanding through Solana x DeFi

xStocks is a multi-chain asset token project that issues and circulates tokens across multiple Blockchains. It is currently deployed in the following formats and chains.

• bToken (ERC-20) format: Ethereum, etc. (e.g.: bAAPL)
• sToken format: Solana (e.g., AAPLx, TSLAx)
• BEP-20 format: BNB Chain (support starts from July 2025)

Among these, sToken on the Solana chain can be swapped and traded on Solana-based DEXs such as Jupiter and Raydium.

Utilizing Solana's high-speed and low-cost characteristics, real-time trading of stock tokens with reduced fees has been realized.

Additionally, Kamino Finance is advancing the integration of asset management functions using sToken as collateral, and efficient investment strategies unique to DeFi are anticipated.

Supported wallets such as Solflare and Phantom are compatible with the Solana ecosystem, allowing for flexible asset management across CEX and DEX.

The xStocks Token is available on the following exchanges.

• CEX: Bybit (available from Japan), Kraken (not available from Japan), etc.
• DEX: Jupiter, Raydium, Kamino (Solana-based), PancakeSwap (BNB Chain-based)

Since the start of sToken trading for xStocks on Solana on June 30, 2025, the on-chain RWA trading volume has been steadily increasing.

xStocks official also introduces a graph of the rapidly growing trading volume along with comments such as the following.

Demand for tokenized equities is real

The @solana community of users and builders has adopted xStocks at incredible speeds, proving tokenized equities can be not only compatible, but central to the onchain economy.

Accelerate.

— xStocks (@xStocksFi) July 5, 2025

The demand for tokenized stocks is real.

The Solana community, consisting of users and builders, is adopting xStocks at an astonishing speed, proving that tokenized stocks are not only compatible but can also become the center of the on-chain economy.

Such movements are promoting the expansion of new stock utilization models in DeFi, including asset management and collateral utilization using sToken, as well as trading that leverages price fluctuations.

How to Buy xStocks: A Guide to Acquiring Tokens Using CEX, DEX, and Wallets

xStocks Token can be purchased on both CEX and DEX. Choose the method that suits your investment style.

Purchase on CEX (e.g., Bybit)

On Bybit, you can directly purchase bAAPL Token, which is linked to Apple stocks, through USDT-denominated spot pairs (e.g., bAAPL/USDT).

Bybit is widely used in the global market, and efforts are being made to enhance the trading environment and security systems.

On the other hand, Bybit received a warning from the Financial Services Agency of Japan in May 2021 for "operating a cryptocurrency exchange business without registration" and currently remains unregistered in the country. Therefore, using it as a resident of Japan may involve legal risks. Before using it, it is necessary to check the regulatory situation in advance and make a judgment at your own risk.

Purchase on DEX (Solana Chain)

sToken issued on Solana can be purchased using wallets like Phantom. The wallet's "Swap" feature connects with Solana-based DEXs like Jupiter, allowing for easy exchange operations within the wallet.

You can use SOL or USDC to purchase xStocks Token.

Here are the steps to purchase xStocks Token with the Phantom wallet.

1. Wallet Settings

2, Purchase SOL (USDC) on SBI VC Trade and transfer to wallet

3, Swap SOL (USDC) for xStosks Token on Phantom Wallet

SBI VC Trade Open an account here (free)

1, Wallet Settings

To purchase xStocks Token on the DEX, you need a Solana-compatible wallet. The most recommended one is the Phantom wallet.

How to create a Phantom Wallet (PC)

We will guide you through the steps to create a new account for Phantom Wallet. This is the first step for those who are creating a wallet for the first time.

1. PC Version: Plug Phantom into your browser

①Access the official Phantom website and select the software for your browser.

Phantom Official X