Latest news with #tokenizedequities
Yahoo
23-07-2025
- Business
- Yahoo
Backed Finance's Tokenized Stocks Product Volume Jumps to $300M
Demand for trading stocks on-chain is real. Switzerland-based Backed Finance's tokenized U.S. equities product, xStocks, has seen a cumulative trading volume of over $300 million less than a month since going live on Bybit, Kraken, and Solana decentralized finance (DeFi) platforms. xStocks are 24/7 onchain tokens representing shares in publicly traded U.S. firms. Each token is fully backed 1:1 by the corresponding underlying stock held by a licensed custodian, allowing investors to take exposure to traditional assets while ensuring transparency and security. These tokens are issued by Backed Finance, which operates under the country's DLT regulatory framework. They are built using the Solana Program Liberty (SPL) token standard to facilitate high-speed transferability and on-chain compatibility with Web3 and decentralized applications. "xStocks have crossed $300m in Total Transaction Volume Onchain, a testament to the demand for tokenized equities," xStocks said on X, calling the growth "just the beginning" that could see volumes double from here. The increased demand for tokenized stocks is part of the broader macro trend of accelerating convergence between traditional markets and decentralized finance. Recent launches by giants like Robinhood and Gemini, offering tokenized U.S. stocks to European users, are proof of this accelerating shift. Not everyone is impressed by tokenized equities While moving stocks to the blockchain rails and enabling access to overseas investors sounds revolutionary, not everyone is impressed. According to Anton Golub, chief operating officer at crypto exchange FreedX, tokenized equities are merely a wrapper and not actual equities. "You're not buying Tesla. You're buying a token that tracks Tesla. Issued by an offshore SPV or broker structure that holds underlying shares," Golub said in a LinkedIn post. Golub explained that buying tokenized equities doesn't provide the buyer with 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 stipulates the buyer will pay the seller the difference between the current value of an asset and its value at the time the contract was initiated. The stock CFDs are fractionalized, allowing traders to buy and sell a fraction of the underlying asset's value with leverage. That allows traders to control a larger position with a smaller capital investment. "CFD brokers in Europe [have] let you trade fractional U.S. stocks for years. You can buy Tesla, Apple, or S&P 500 with 5x leverage and full liquidity," Golub noted. This [tokenization] isn't democratizing access. It's just reframing CFDs with tokenization narrative." Additionally, concerns have been raised about liquidity drying up over the weekend. Liquidity refers to the ease of executing large buy and sell orders at stable prices. "There are still significant frictions with these new products," Parsec Finance noted in its newsletter early this month. "Liquidity cold start problem (liquidity begets volume but relies on market makers taking the risk and betting on real usage), spreads will be wide and probably insane on weekends."Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
08-07-2025
- Business
- Bloomberg
Robinhood Discussing Tokenized Equities With Regulators
By , Francine Lacqua, and Paige Smith Save Robinhood Markets Inc. Chief Executive Officer Vlad Tenev said the firm is in talks with regulators over its offering of tokenized equities in Europe, after the launch drew rebuke from companies including OpenAI. The Menlo Park, California-based firm announced last week that retail investors using its app in the European Union could start trading tokens that represent shares of US equities on blockchain. The launch included a giveaway of tokens for closely held companies like OpenAI. The firm led by Sam Altman later cautioned traders that the 'tokens' are not equity in the company.
Yahoo
04-07-2025
- Business
- Yahoo
Robinhood Launches Tokenized US Stocks, ETFs for EU Customers, Partners with Arbitrum
Robinhood Markets Inc. (NASDAQ:HOOD) is one of the high profit margin stocks to buy now. On June 30, Robinhood announced the launch of new tokens that will enable its European Union/EU customers to trade over 200 US stocks and ETFs. This includes popular companies like NVIDIA Corp. (NASDAQ:NVDA), Apple Inc. (NASDAQ:AAPL), and Microsoft Corp. (NASDAQ:MSFT). These commission-free tokens can be traded around the clock, 5 days a week. Robinhood also plans to expand this offering to include tokens linked to stocks of privately held companies. The tokens are being issued through a partnership with the blockchain firm Arbitrum, though Robinhood intends to eventually develop its own Layer 2 blockchain to support 24/7 trading and self-custody. A successful business person confidently managing their finances on a mobile device. Tokenized equities blend traditional finance with crypto-like trading and are gaining traction among international investors. While these tokens could alter the securities investing landscape, they currently face a lack of clear regulatory guidelines in the US. Robinhood Markets Inc. (NASDAQ:HOOD) operates a financial services platform in the US that allows users to invest in stocks, ETFs, American depository receipts, options, gold, and cryptocurrencies. While we acknowledge the potential of HOOD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
19-06-2025
- Business
- Yahoo
Coinbase (COIN) Surges 16.32% on Planned Stock Trading Adoption
We recently published a list of These 10 Stocks Boast Double-Digit Gains Amid Boring Market. Coinbase Global, Inc. (NASDAQ:COIN) is one of the best-performing stocks on Thursday. Coinbase Global jumped by 16.32 percent on Wednesday to close at $295.29 apiece as investors snapped up shares following plans to offer tokenized equities to its customers. Coinbase Global, Inc. (NASDAQ:COIN) sought the approval of the Securities and Exchange Commission for the initiative, which would allow it to offer stock trading through its blockchain technology. If approved, Coinbase Global, Inc. (NASDAQ:COIN) would directly compete with retail brokerage companies namely Robinhood Markets and Charles Schwab. According to Coinbase Global, Inc. (NASDAQ:COIN) Chief Legal Officer, Paul Grewal, the new initiative is 'a huge priority' for the company, enabling it to diversify beyond cryptocurrencies. A shot of someone securely accepting crypto assets as payment, showcasing the company's payment solutions. Tokenizing equities is a process in which shares of a company are converted into a digital token, similar to how cryptocurrencies are traded. Instead of holding the securities directly, investors hold tokens that represent ownership of the securities. While we acknowledge the potential of COIN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
17-06-2025
- Business
- Yahoo
Coinbase seeking US SEC approval to offer blockchain-based stocks
By Hannah Lang (Reuters) -Coinbase is seeking a green light from the U.S. Securities and Exchange Commission to offer "tokenized equities" to its customers, the crypto exchange's chief legal officer said in an interview with Reuters. If granted, the move would allow Coinbase to effectively offer stock trading via blockchain technology, placing it in direct competition with retail brokerages such as Robinhood and Charles Schwab and could open an new business segment for Coinbase. The concept is a "huge priority," said Paul Grewal, the chief legal officer of Coinbase. Tokenizing equities is a process in which shares of a company are converted into a digital token, similar to how cryptocurrencies are traded. Instead of holding the securities directly, investors hold tokens that represent ownership of the securities. Proponents have said that tokenized equities could reduce trading costs, enable faster settlement and facilitate round-the-clock trading. Critics have said there are plenty of gaps that need to be addressed before tokenized equities can be commonly traded. The World Economic Forum in a report last month pointed to a lack of sufficient secondary-market liquidity as well as the lack of clear global standard as two major challenges for adoption. A representative for the SEC did not immediately respond to a request for comment. Currently, tokenized equities are not available for trading in the United States, but several firms are experimenting with the concept. Rival crypto exchange Kraken said last month that it is launching tokens of U.S. equities, called xStocks, which will be available in select markets outside the United States. In order to offer tokenized equities in the United States, Coinbase would either need to be granted a so-called "no action letter" or exemptive relief from the SEC, in which the securities regulator would pledge not to pursue an enforcement action if Coinbase moved forward. Typically, companies that offer trading in securities have to be registered as broker-dealers. Coinbase is not registered as a broker-dealer, and the SEC sued the company in 2023 during former President Joe Biden's administration, alleging that it was operating as one without registering with the agency. The SEC under President Donald Trump's administration dropped that case this year. A no action letter would be issued by SEC staff in response to a request from a company like Coinbase, saying that the SEC would not object to a certain offering and would not recommend an enforcement action if a firm were to move forward with that offering. Grewal did not say if Coinbase had already submitted an official request to the SEC or when a potential product launch might happen. "With a no action letter, an issuer of a tokenized equity or a platform that wishes to offer secondary trading in those equities can have some confidence, some comfort, that the SEC has adopted its view of why this product is compliant," Grewal said. "It's that confidence that has been lacking so far, and I think really held back a lot of the institutional adoption" of crypto and blockchain technology, Grewal added. The move from Coinbase comes as Trump has sought to overhaul U.S. cryptocurrency policy after courting cash from the industry on the campaign trail. Trump has appointed industry-friendly regulators and has hosted industry leaders at the White House. Cryptocurrencies have reacted favorably, with bitcoin reaching new all-time highs this year. The SEC under Trump has dropped lawsuits against a litany of crypto companies, including Coinbase, Binance and Kraken, and has instituted a crypto task force charged with devising new rules for digital assets.
