Before the rise of the crypto industry, few could have imagined that “on-chain” would be so deeply integrated into our daily lives. Crypto technology has completely revolutionized the way people manage their funds, returning financial dominance to users instead of relying on traditional institutions. Today, DeFi has taken another important step - tokenized stocks are officially launched.
Solana is a popular public blockchain in the crypto world, known for its high-speed transaction processing capabilities and smooth user experience. Today, Solana is bringing an important pillar of traditional finance into the DeFi world through the innovation of tokenized stocks. Each of these blockchain tokens issued by Backed (such as AAPLx, TSLAx) is backed 1:1 by real US stocks. This article will take you through the basic concepts of tokenized stocks, applications on Solana, advantages and risks, and teach you how to buy and trade stocks on Solana step by step.
What are tokenized stocks?
Tokenized stocks are blockchain-mapped versions of real-world tradable stocks, such as stocks of well-known companies such as Apple, Tesla, and Nvidia. On Solana, these stocks are called xStocks, and each token is backed by a 1:1 collateral of real stocks. This product, launched by Backed, is leading the on-chain future of finance.
For example, AAPLx is an on-chain representation of Apples stock AAPL, and the corresponding real stock behind it is kept by a trusted custodian. xStocks are pegged to real stock market prices and can be traded around the clock like crypto assets, without being restricted by traditional market working hours. More importantly, they can be used as collateral in DeFi applications to participate in various operations such as lending and trading.
Note: The availability of tokenized shares may be restricted by local securities laws. Please ensure compliance with local regulatory requirements before proceeding.
Why Trade Tokenized Stocks on Solana?
Solana is a high-performance blockchain known for its ultra-fast transaction speeds and low fees. Its core advantages include:
Second-level transaction confirmation: settlement is completed in less than one second;
Ultra-low transaction fees: no pressure on transactions, no need to worry about high gas fees;
Excellent wallet experience: Phantom, Solflare and other wallets are well supported;
High DeFi integration: xStocks can be used as collateral or LP tokens in various DeFi scenarios.
With a strong developer community, DeFi protocol ecosystem and institutional support, Solana is an ideal trading platform for tokenized stocks.
A platform for trading tokenized stocks on Solana
Several platforms have launched or integrated tokenized stocks, including:
Backed Finance: A leading token issuer with over 60 stocks and ETFs listed (e.g. AAPLx, SPYx, NVDAx), which can be traded on Solana DEXs such as Jupiter and Raydium.
Solflare Wallet: A popular Solana wallet that allows users to directly purchase stock tokens with SOL or USDC. Click Market Stocks on the mobile phone or enter the Stocks page on the web to trade.
deBridge: An extremely fast cross-chain protocol that allows you to enter xStocks transactions in seconds from anywhere in the DeFi world.
How to buy tokenized shares on Solana through deBridge?
As an extremely efficient cross-chain protocol, deBridge removes the risks and bottlenecks of traditional liquidity pools, allowing funds and information to flow between chains at lightning speed. Here are the steps to use deBridge:
If you don’t have Solana assets
Visit app.debridge.finance ;
Select the source chain and asset you want to cross-chain, for example, select Ethereum network and ETH;
Select Solana as the target chain and SOL as the target asset;
Connect your EVM wallet and Solana wallet respectively;
Enter the quantity, check the fees, and confirm the transaction details;
After signing the transaction, you will receive SOL in your Solana wallet;
You can then redeem SOL for any tokenized stock on deBridge, such as AAPLx, NVDAx, etc.
If you have Solana assets
Visit app.debridge.finance ;
Select Solana for both the source and target chains, select SOL and then select the tokenized shares you want to exchange.
This process allows you to redeem your tokens for tokenized stocks (xStocks) at market price.
Disclaimer: deBridge does not issue, hold or broker tokenized stocks. All related assets are issued and provided by third-party platforms.
Advantages of Tokenized Stocks on Solana
24/7 trading: xStocks can be traded 24/7, regardless of working days;
Instant arrival: xStocks go directly into your wallet without relying on a clearing house like traditional stocks;
Deep DeFi integration: can be used for on-chain lending, smart contract operations, mortgages, etc.
Low cost and high efficiency: Ultra-low fees and high-speed transactions bring a better trading experience.
Risk Warning
Although tokenized stocks are very attractive, any investment is accompanied by risks, and users need to make decisions based on their own risk preferences:
Regulatory risks: For example, if the US securities regulations are strict, users in some regions may be restricted;
Custody risk: xStocks relies on the issuer to keep the actual stock;
Liquidity risk: Not all tokenized stocks have good trading depth;
Smart contract risks: technical vulnerabilities may still exist;
Market risk: Stock prices may fluctuate significantly due to global events or market sentiment.
The Future of Stock Trading on Solana
Tokenized stocks build a bridge between traditional finance and the on-chain world. Now, with the help of platforms such as Solana, deBridge and Solflare, anyone can easily access xStocks, making traditional stock trading as flexible and free as DeFi.
Whether you’re a veteran crypto user or an investor new to stocks, tokenized assets on Solana open the door to the future of finance.
