Bybit Expands Into Real-World Assets with Backed Finance Partnership for Tokenized

 

A new wave of tokenized equity products is reshaping how investors access global markets, and xStocks is leading the charge. Created by Backed Finance in partnership with Bybit and Mantle, xStocks allows tokenized versions of major U.S. company shares such as Nvidia (NVDA), Apple (AAPL), and MicroStrategy (MSTR) to be traded on-chain in a regulated, transparent, and globally accessible format.

Each xStock token is backed one-to-one by the underlying equity, which is held in custody by regulated third-party custodians. This approach ensures full backing while enabling the shares to move seamlessly within decentralized finance (DeFi) ecosystems.

 

How xStocks Works

For every xStock minted, a real-world share of the corresponding company is held by the issuer in custody. These tokens can then be traded 24/7 on platforms such as Bybit and used within DeFi protocols for lending, borrowing, or liquidity provision.

Bybit supports deposits and withdrawals of xStocks through the Mantle Network, which acts as the blockchain infrastructure layer connecting centralized and decentralized platforms. Mantle’s low fees and high performance make it an ideal environment for on-chain trading of real-world assets.

This structure allows investors to gain global exposure to leading U.S. equities without the limitations of traditional brokerage systems or market hours. Tokenized stocks can also be composed into smart contracts, collateral systems, and decentralized trading strategies, creating new opportunities for both traders and developers.

 

Why Tokenized Stocks Matter

The launch of xStocks marks a major step toward convergence between traditional finance (TradFi) and decentralized finance. By tokenizing shares of publicly traded companies and making them available on-chain, the project introduces a host of benefits:

• Global access: Investors from almost any region can gain exposure to U.S. stocks without relying on traditional brokerages.

• Composability: Tokenized stocks can integrate with DeFi platforms, enabling creative use cases such as yield farming or collateralized lending.

• Continuous trading: Unlike traditional markets, xStocks can trade around the clock, while still tracking underlying asset prices through custodial backing and oracle feeds.

• Fractional ownership: Smaller investors can gain access to high-value stocks through fractionalized token units.

This level of accessibility and flexibility represents a meaningful expansion of the global financial system into blockchain-based environments.

 

Key Partnerships Driving xStocks

• Backed Finance serves as the issuer and compliance manager for xStocks, ensuring that each token is fully backed by a corresponding equity share and held under regulated custody.

• Bybit, one of the world’s top crypto exchanges, provides the liquidity, infrastructure, and user base to make tokenized stock trading seamless.

• Mantle Network delivers the blockchain infrastructure that underpins the system, offering a modular Layer 2 framework with high throughput and low transaction costs.

Together, these partners form a complete pipeline for bringing traditional assets onto the blockchain. Shares are securely held, tokenized, and then made accessible through regulated on-chain channels.

 

Use Cases and Early Listings

The initial lineup for xStocks includes a mix of technology and finance leaders such as Nvidia, Apple, Tesla, Coinbase, and MicroStrategy. Each stock is represented by a corresponding xStock token (for example, NV DAX for Nvidia and MSTRX for MicroStrategy).

Holders can store these tokens in self-custody wallets, trade them directly on Bybit, or integrate them into DeFi applications across the Mantle ecosystem. Over time, more equities and potentially ETFs may be added to expand the offering.

 

Regulatory and Market Considerations

While the concept is groundbreaking, tokenized securities carry some caveats:

• No voting or dividend rights: Token holders typically gain economic exposure but not shareholder privileges like voting or direct dividend collection.

• Jurisdictional restrictions: Residents of certain countries, including the United States, may be restricted from purchasing or holding xStocks until further licensing is obtained.

• Price variance risk: During off-market hours, token prices can deviate from the underlying asset price, creating both arbitrage opportunities and liquidity risks.

• Regulatory evolution: The treatment of tokenized stocks varies across jurisdictions, and projects like xStocks will likely face ongoing regulatory review as adoption grows.

Even with these considerations, the model represents a significant advancement toward a future where on-chain representations of real-world assets can coexist with traditional financial infrastructure.

 

A New Era for Real-World Assets

Tokenization of assets like equities, bonds, and commodities has long been viewed as the next frontier for blockchain adoption. Projects such as xStocks demonstrate that this vision is now moving from concept to implementation.

By combining regulatory compliance, on-chain transparency, and cross-border accessibility, xStocks delivers a clear example of how tokenized finance could evolve. The initiative also highlights the growing appetite for real-world assets (RWAs) among DeFi participants, who are increasingly seeking stable, yield-bearing alternatives to purely speculative tokens.

 

Final Thoughts

The xStocks launch represents more than a new trading product. It is part of a broader transformation of financial infrastructure — one that connects traditional equity markets to the programmable, borderless nature of blockchain.

Bybit, Mantle, and Backed Finance are positioning themselves at the intersection of these two worlds. If xStocks succeeds, it could pave the way for widespread tokenization of major assets, potentially redefining how investors trade, store, and leverage real-world value in the digital age.

 

As more institutions explore on-chain settlement, custodial bridges, and tokenized asset offerings, xStocks may be remembered as one of the early milestones that made Wall Street truly interoperable with Web3.

 

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