You Can Now Trade Stocks Like NVDA and MSTR on Solana: Here’s How It Works

Crypto traders can now place shares of NVIDIA, Tesla and strategy in their Solana portfolios thanks to a new function called Xstocks, in which Tokens 1: 1 is supported with shares of selected listed companies on the Solana Blockchain.

The function of tokenization company supported, rolled out at centralized stock exchanges Kraken and Bybit this week in certain regions and also launched native on the Solana Blockchain, enables traders to win exposure to popular US shares Such as Meta, Netflix, Coinbase, McDonald’s and more on-chain.

In other words, eligible users can change crypto or Fiat for shares in the aforementioned stock exchanges, or change any Solana token for the Xstock of their choice via decentralized protocols such as Jupiter or Raydium.

Although tokenized shares, or the process of placing shares of companies in the chain, is not a new idea, Xstocks differs from previous implementations that simply reflected the price of an off-chain assets With a “mirrored” active in the chain.

Instead, each Xstock token 1: 1 is supported by the underlying asset that is held by a regulated third parties. In other words, a user who buys part of Apple on-chain through Xstocks, is convinced that their only share of Apple is kept in custody at any time and needs to be exchanged.

“For the first time, people around the world can possess and use a part of a tokenized shares as they would use money. You can move, hold, spend it or borrow it. Everything from your wallet, without intermediaries, no boundaries and no delays,” said Co-Ceo Arjun Sethi in a statement about the Xstock-Lancing of the Lancing.

According to Backed, Handelstokkenized shares such as Xstocks offer a handful of benefits that users who act through a traditional brokerage would not receive. For example, with Xstocks, users can act 24/7, while a brokerage is subject to the hours of the stock market.

Moreover, their use on global blockchains enables participants in other regions to get exposure to the US stock market and for transactions without broker committees. It also makes shares available for use in decentralized finances (Defi).

While Kraken and Bybit have a backed and his Xstocks product have tapped for its tokenized shares, other platforms want to build their own tokenized product suites.

Coinbase is looking for approval of the regulatory authorities to offer tokenized shares on his platform, with his chief legal officer Paul Grewal call that approval a “huge priority” in June.

Further, Robinhood announced Monday That the tokenized stock trade rolls out to its European users, so that they can trade through the American listed shares via Ethereum Layer-2 Network Arbitrum. The company is also planning to launch its own special Layer-2 blockchain that are driven by Arbitrum and migrate the service to that chain.

Published by Andrew Hayward