Backed Finance is launching xBridge, a revolutionary cross-chain bridge aimed at facilitating the transfer of tokenized stocks across different blockchains while preserving important elements such as stock splits, dividends, and other corporate activities.
Announced at Solana Breakpoint and developed in collaboration with Chainlink, xBridge empowers users to move tokenized equities, referred to as xStocks, between Ethereum and Solana, as disclosed in a recent press release.
These tokens are directly backed 1:1 by actual stocks or ETFs and replicate their on-chain behavior, including responses to events like stock splits or dividend distributions.
xBridge utilizes Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to guarantee that when a token transitions from one blockchain to another, its connection to the underlying asset and functionality remain unchanged.
“For years, the crypto space has offered either permissionless native digital assets or real-world assets restricted within closed ecosystems,” said Yotam Katznelson, CTO and COO of Backed. “With xStocks, we have made tokenized equities available in DeFi without permissions, and now with xBridge, we’re completing the process: tokenized stocks can finally circulate as freely as any other crypto asset.”
On Ethereum, balances adjust using an updatable multiplier, while on Solana, they depend on Token2022 and automatic rebasing. However, the end result is consistent: token balances update to reflect stock splits or dividend events, even after moving across chains.
Backed’s xStocks are currently operational on several cryptocurrency trading platforms, including major centralized exchanges. Recently, Kraken acquired Backed Finance.
With the bridge now operational in pilot mode, Backed intends to expand support to Mantle, TRON, and other blockchains in the near future.
