xStocks

xStocks is a tokenized equity infrastructure layer that provides 1:1 collateralized token representations of publicly traded U.S. stocks and ETFs on multiple blockchains. It enables exchanges, DEXs, wallets, and DeFi protocols to integrate tokenized equities as a new asset class, offering 24/7 trading, self-custody, and DeFi composability. The platform serves as infrastructure for trading venues to access incremental trading volume and expand fee surfaces through tokenized equity markets.

xStocks is a system that creates token versions of real stocks. It doesn't directly produce yield itself, but enables other apps and platforms to generate yield by using these tokens.

The platform supports three main ways for users and partners to earn:

1. Dividend rebasing: When the actual stock pays a dividend (a company payout to shareholders), xStocks tokens automatically adjust. Your token balance increases slightly through a blockchain update, keeping the token's value matched 1:1 with the stock. This passes the dividend's value to token holders.

2. Trading fee opportunities: Exchanges, decentralized trading apps (DEXs), and liquidity providers that list xStocks tokens can earn fees. They capture spreads and transaction fees from people trading tokenized stocks—whether in simple spot trades, margin trading, or derivatives.

3. DeFi composability: xStocks tokens can be used across decentralized finance (DeFi) applications. For example, you can use them as collateral to borrow in lending markets, add them to liquidity pools to earn swap fees, or bundle them into structured financial products.

The yield flows to different groups:

• Token holders receive the dividend-equivalent value through the automatic balance adjustments.
• Trading venues (exchanges, DEXs) earn transaction fees from the extra trading volume that tokenized stocks bring.
• Liquidity providers capture spreads and trading fees by facilitating trades.

Importantly, the xStocks infrastructure itself does not charge any protocol fees. Instead, it lets partners (like exchanges and DeFi apps) make money through their own existing fee models by offering tokenized stock markets.

Backed Finance AG, the parent company behind xStocks, is backed by a consortium of venture capital firms and investment funds from both DeFi and traditional finance sectors. According to the official company page on backed.fi, the investors include: Blockchain Founders Fund, Cyber Fund, Exor Seeds (the early-stage investment arm of Exor), Gnosis (as both a blockchain and investment entity), Mindset Ventures, Nonce Classic, Semantic, Stake Capital, and Stratos. The company raised its seed round in 2021-2022 during its initial development phase. xStocks operates as part of the xStocks Alliance, which includes major crypto exchanges and platforms as partners such as Kraken, Bybit, Solana, Gate.io, Bitget, and others, though these are primarily distribution and integration partners rather than equity investors.