The demand for trading shares on the chain is real.
Switzerland-based supported Finance’s tokenized US equity product, Xstocks, has seen a cumulative trading volume of over $ 300 million less than a month since walking live on Bybit, Kraken and Solana Decentralized Finance (Defi) platforms.
Xstocks are 24/7 onchain -Tokens, representing shares in listed US companies. Each token is fully backed up 1: 1 of the corresponding underlying stock contained by a licensed depot, allowing investors to take exposure to traditional assets while ensuring transparency and security.
These symbols are issued by supported funding operating under the country’s DLT regulatory framework. They are built using Solana Program Liberty (SPL) token standard to facilitate high-speed transfer and on-chain compatibility with web3 and decentralized applications.
“Xstocks has crossed $ 300 million in the total transaction volume onchain, a testimony to the demand for tokenized shares,” Xstocks said at X, called the growth “just the beginning”, which could see volume double from here.
The increased demand for tokenized warehouses is part of the wider macro -end to accelerate the convergence between traditional markets and decentralized funding. Recent launches of giants such as Robinhood and Gemini offering tokenized US stocks to European users are proof of this accelerating shift.
Not everyone is impressed with tokenized shares
While moving stocks to the Blockchain rails and enabling access to overseas investors sounds revolutionary, not everyone is impressed.
According to Anton Golub, CEO of Crypto Exchange Freedx, tokenized shares are only a wrapping and not actual shares.
“You don’t buy Tesla. You buy a token that tracks Tesla. Issued by an offshore SPV or broker structure that has underlying shares,” Golub said in a LinkedIn post.
Golub explained that the purchase of tokenized shares does not give the buyer voting rights, direct custody of the stock, or actual ownership, as is the case with stock -CFDs issued in Europe.
CFD or contract for difference is a contract that determines that the buyer pays the seller the difference between the current value of an asset and its value at the time the contract began.
The stock -CFDs are fractionalized, allowing traders to buy and sell a fraction of the underlying asset value with leverage. It allows traders to control a larger position with a smaller capital investment.
“CFD brokers in Europe [have] Let you trade with US stocks for years. You can buy Tesla, Apple or S&P 500 with 5x leverage and full liquidity, ”noted Golub. This [tokenization] Does not democratize access. It’s just to reshape CFDs with tokenization narrative. “
In addition, concerns have been raised about liquidity breeding over the weekend. Liquidity refers to easy to perform large purchase and sales orders at stable prices.
“There are still significant frictions with these new products,” parsec finance noted in his newsletter early this month. “Liquidity -cold starting problem (liquidity begins volume, but depends on market manufacturers taking the risk and rate of real use), spreads will be broad and probably insane on the weekends.”
Read more: Supported financing debuts Tokenised Stocks on Bybit, Kraken and Solana Defi Protocols
