Chainlink and Backed Finance Launch xBridge: Cross-Chain Tokenized Stocks Are Here
Forget waiting for traditional markets to open. The race to bridge real-world assets with blockchain just shifted into hyperdrive.
The xBridge Effect: Stocks Go Multi-Chain
Backed Finance—a heavyweight in tokenizing real-world assets—just teamed up with oracle giant Chainlink. Their new creation, xBridge, isn't just another protocol. It's a direct pipeline for moving tokenized stocks and ETFs across different blockchains. Think of it as a high-speed financial rail system, bypassing the slow, manual settlement of legacy finance.
Why This Cuts Through the Noise
This isn't about creating synthetic versions. Backed's tokens are fully collateralized, 1:1 with the actual securities. xBridge uses Chainlink's Cross-Chain Interoperability Protocol (CCIP) to move these assets securely. It automates the entire process—minting on one chain, burning on another—without a central custodian holding your keys. That's a direct challenge to the walled gardens of traditional finance, where moving assets between systems can take days and cost a fortune in intermediary fees.
The Bigger Picture: A Market Unleashed
The target? A multi-trillion-dollar market for stocks and bonds currently locked in traditional systems. xBridge could let a trader in Hong Kong use Ethereum-based liquidity to gain exposure to a Nasdaq-traded ETF, then seamlessly move that position to a faster, cheaper chain for further transactions. It fragments liquidity no longer—it unifies it across the crypto ecosystem. It's the infrastructure play that makes the vision of a 24/7 global stock market tangible, while giving a subtle nod to the fact that traditional finance still treats cross-border settlement like it's the 1970s.
The bridge is built. The real test is whether the old money is brave enough to walk across it, or if they'll just keep paying tolls on the slower, more expensive route they've always known.
Cross-Chain Liquidity for Fully Backed xStocks
Backed Finance reported that the bridge addresses a long-term liquidity issue. In the past, the tokenized stocks issued on Ethereum were unable to be transferred to Solana. The market depth and trading were restricted by this separation. Using xBridge, tokenized equities may now be moved between networks. The liquidity may shift to where the trade is quicker or cheaper.
All xStocks are supported on a one-to-one basis by an underlying stock or ETF. The structure lends itself to perfect price tracking and ownership representation. Shareholders who hold the tokens still enjoy dividends where applicable. The bridge infrastructure is automatic in terms of corporate actions.
Various technical variations assist update balances on every blockchain. On Ethereum, xStock balances are fine-tuned to a multiplier system that can be updated. In Solana, the Token2022 standard uses automatic rebasing. Both methods make balances accurate following events like the stock splits even in cross chain assets.
Chainlink Strengthens xBridge Infrastructure
Yotam Katznelson, the Chief Technology Officer and Chief Operating Officer of Backed Finance, noted that the launch marks an important part of the strategy of the company. According to him, xStocks provides tokenized equities for decentralized finance without permission barriers. The xBridge enables the movement of those assets, like native crypto tokens, across ecosystems.
The bridge has already been built with key exchanges of cryptocurrencies, such as Kraken. Kraken has recently purchased Backed Finance, which opens up more access to tokenized equities. In the following weeks, Backed Finance will also support other blockchains, such as Mantle and TRON.
With Chainlink infrastructure and asset backing, xBridge will minimize risks in tokenized stock trading. The system automatizes detailed company transactions and cross-chain transfers. This strategy attracts both retail and institutional consumers who want to have a secure entry to on-chain equity markets.
