KuCoin, one of the world’s largest and most globally accessible crypto exchanges, has officially launched xStocks, a suite of tokenized equities issued by Swiss-based tokenization firm Backed.
The move marks a significant leap in the fusion of traditional finance (TradFi) and decentralized finance (DeFi). It enables over 41 million users across 200+ countries to trade top global stocks using USDT within a single, crypto-native account.
What are xStocks?
xStocks are 1:1 tokenized representations of real-world equities and ETFs, including high-demand assets like:
- SPYx – S&P 500 ETF
- TSLAx – Tesla
- MSTRx – MicroStrategy
- NVDAx – NVIDIA
- CRCLx – Circle
These tokens are issued on the Solana blockchain (with Ethereum compatibility), ensuring fast, low-cost transactions. Each token is fully backed by the corresponding stock held in bankruptcy-remote, regulated custodial accounts.
Why this launch matters
The timing of this launch is no coincidence. Just last week, NVIDIA became the first company to exceed a $4 trillion valuation, while Bitcoin crossed the $120,000 mark. This reflects strong growth across both traditional and digital asset markets.
xStocks enable crypto users to capitalize on this dual-cycle momentum by offering:
- USDT-based access to top U.S. equities
- Instant, 24/7 trading without reliance on fiat
- Frictionless portfolio allocation between stocks and crypto
As KuCoin CEO BC Wong noted, “The launch of xStocks is a strategic milestone in bridging traditional finance and the Web3 ecosystem.”
Built on Compliance and Transparency
Backed, the issuer of xStocks, ensures full regulatory alignment:
- Assets are tokenized under an EU-approved prospectus
- Tokens are structured under the Swiss DLT Act
- Proof of Reserves, powered by Chainlink, is coming soon
- Token holders have primary claims on the underlying collateral
This foundation of compliance and transparency aims to differentiate xStocks from earlier attempts at on-chain synthetic equity trading.
New Era of Multi-Asset Allocation
KuCoin’s global footprint allows users to bypass traditional limitations in equity investing. With xStocks, users can trade U.S. stocks using USDT with no fiat on-ramps. They can also seamlessly swap between crypto and equities in one account and build custom portfolios that blend stable ETF exposure with high-growth tech stocks and digital assets.
With xStocks, KuCoin is evolving into a global, multi-asset platform that empowers investors across borders. The integration of tokenized equities within the crypto ecosystem allows for enhanced capital efficiency, risk diversification, and portfolio agility, unlocking new opportunities for both institutional and retail participants.
Founded in 2017, KuCoin has grown into one of the most trusted crypto exchanges globally. The platform offers over 1,000 digital assets, including Spot and Futures trading, DeFi wallets, payments, and now tokenized equities. It has earned accolades from Forbes and Hurun and maintains top-tier security certifications (SOC 2 Type II, ISO 27001:2022).
About Backed
Backed is a Swiss-based tokenization company focused on issuing legally compliant, freely transferable tokenized versions of traditional financial assets. Its tokens are compatible with both the Ethereum and Solana ecosystems.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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