XStocks, a tokenized stock product by Backed Finance, has launched on Ethereum featuring around 60 tokenized stocks such as NVIDIA, Tesla, and Amazon. Prior to Ethereum, xStocks debuted in other markets, and seeks to make use of Ethereum's extensive smart contract capabilities. As Ethereum dominates decentralized finance with significant total value locked (TVL), the move comes following an earlier launch of tokenized stock trading by Gemini in June 2025, with ongoing pressure from regulators on tokenized equity products. Tokenized equities aim to democratize investments by simplifying access but face scrutiny over legal protections and rights typically associated with traditional stockholding. Experts have raised concerns about the absence of claims on company assets and voting rights in these tokenized formats. The tokenized stock market currently holds a market cap of $342 million, just 1.2% of the total real-world asset market cap of $27.9 billion.

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