XStocks, a tokenized stock product provided by Backed Finance, has been officially deployed on Ethereum, which provides around 60 tokenized stocks. These stocks entail highly-rated businesses, such as NVIDIA, Amazon, Tesla, Meta, and Walmart.
The popularity of Ethereum as a major innovative contract network made it an ideal option in this launch. XStocks had been present on other blockchains, including Solana, BNB Chain, and Tron, but Ethereum has a large user base and dominates the field of decentralized finance (DeFi), which made it the right place to grow the reach of the product.
Ethereum is currently the platform with a total value locked (TVL) of $90.8 billion, which is 60 percent of the total amount of all blockchains. This contributes to making it the most popular blockchain for DeFi.
The announcement of tokenized equity on Ethereum is preceded by similar actions of other businesses, including the tokenized stock trading offered by Gemini and the interest in the same prospect.
A tokenized asset is a type of asset that is intended to help bridge the gap between traditional finance and blockchain technology, developing digital forms of physical assets such as stocks.