Tokenized equities have stirred controversy as global regulators and stock exchanges push back against blockchain-based representations of traditional assets. Despite the scrutiny, XStocks, a tokenized stock product from Backed Finance, announced its launch on Ethereum on Tuesday.
XStocks launches on Ethereum
The platform introduces around 60 tokenized stocks, including NVIDIA, Amazon, Tesla, Meta, and Walmart. Prior to Ethereum, XStocks had already debuted on Solana, BNB Chain, and Tron. Backed Finance, a real-world asset (RWA) tokenization company, has partnered with exchanges such as Kraken and Bybit to host its products.
Ethereum is one of the world’s most widely adopted smart contract networks and XStocks were built to meet users where they already are.
Ethereum continues to dominate decentralized finance (DeFi), with a $90.8 billion total value locked (TVL) as of Monday, accounting for 60% of the global DeFi market. In June 2025, Gemini introduced tokenized stock trading on Ethereum, while eToro is reportedly exploring a similar launch.
Understanding tokenized equities
Real-world asset tokenization involves creating digital versions of traditional assets, such as stocks or commodities, on blockchains. This approach is seen as a way to make illiquid assets, like real estate, more accessible.
Supporters argue that tokenized stocks democratize equity investing by lowering entry barriers and bypassing regulatory silos. However, experts note that these instruments occupy a legal gray area. Unlike traditional stock ownership, tokenized shares may not provide voting rights, claims on company assets, or the same investor protections.
Regulatory and market challenges
Stock exchanges and regulators are urging tighter oversight, with the US Securities and Exchange Commission (SEC) and other authorities calling for stricter rules around tokenized equities.
Still, fintech and crypto firms are pressing forward. On June 30, Robinhood launched a blockchain in Europe dedicated to tokenized stock trading. According to analytics platform RWA.xyz, the tokenized stock market currently holds a capitalization of $342 million, just 1.2% of the broader $27.9 billion RWA sector.