BackedFi, Chainlink Launch xBridge to Move Tokenized Stocks Crosschain
Key Highlights Backed Finance and Chainlink launched xBridge to move tokenized stocks between Ethereum and Solana. xBridge uses Chainlink’s CCIP to ensure tokenized stocks behave the same as real-world...
Key Highlights
- Backed Finance and Chainlink launched xBridge to move tokenized stocks between Ethereum and Solana.
- xBridge uses Chainlink’s CCIP to ensure tokenized stocks behave the same as real-world assets across blockchains.
- The bridge is live in pilot mode, integrated with platforms such as Kraken, with support for Mantle and TRON coming next.
Backed Finance, in partnership with Chainlink, today introduced xBridge, a cross-chain bridge that allows tokenized stocks to move between Ethereum and Solana while keeping track of corporate actions such as stock splits and dividends.
The bridge was announced at Solana Breakpoint and is currently live in pilot mode. The system uses Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to ensure that tokenized stocks, called xStocks, act the same way as the real stocks or ETFs they represent, even when they move from one blockchain to another.
This technology allows investors to move tokenized equities safely across chains without losing connection to underlying stocks or ETFs.
How xBridge works and keeps tokens accurate
xBridge is designed to make tokenized stocks accessible across multiple blockchains. The tokens are completely backed on a 1:1 ratio with actual stocks or ETFs. As a result, they act exactly like stocks onchain, including dividend payments and stock performance, including handling events like dividend payouts or stock splits.
On Ethereum, balances adjust with an updatable multiplier, while Solana uses a system called Token2022 with automatic rebasing. These systems ensure that token balances reflect corporate actions even after crossing chains.
Yotam Katznelson, CTO and COO of Backed Finance, commented on the launch, stating, “With xStocks, we brought tokenized equities into DeFi permissionlessly, and now with xBridge, we are completing the loop: tokenized stocks can finally flow as freely as any other crypto asset.”
The bridge is already integrated with major cryptocurrency trading platforms, including Kraken, which acquired Backed Finance earlier this month. In the coming weeks, Backed Finance plans to add support for other blockchains like Mantle and TRON to make it easier for more users to access tokenized stocks and trade them where it is cheaper or faster.
Why xBridge matters for investors
Previously, tokenized stocks on Ethereum could not move to Solana, which kept liquidity and trading limited. Now, these tokens can flow freely between chains. The bridge automatically handles important corporate actions, which makes trading safer and more reliable for both retail and institutional users.
With this new tool, investors will be able to trade tokenized stocks safely and with confidence, providing them access to a new layer of blockchain-based financial markets.
Also Read: Bitwise Slams MSCI Rule, Backs Strategy’s Inclusion in Index
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