Bitrue, a popular crypto exchange, has recently made an exciting announcement regarding its support for tokenized stock trading issued by Backed Finance through xStocks. This new feature allows users in non-restricted jurisdictions to invest in some of the biggest global tech brands and earn from their success, according to the exchange.
In an official statement, Bitrue revealed that it will kick off this initiative by supporting six tokenized stocks, namely AAPLX (Apple), CRCLX (Circle Internet Group), MSTRX (MicroStrategy), NVDAX (NVIDIA), SPYX (SPDR S&P 500 ETF Trust), and TSLAX (Tesla). These tokenized stocks will be accessible through Bitrue Alpha, a feature recently introduced by the exchange to facilitate quick listing of popular tokens for trading, allowing users to take advantage of early momentum. Additionally, successful coins on Bitrue Alpha may eventually be listed on the spot exchange.
Users residing in specific regions will be able to access this initial group of tokenized stocks via the Bitrue app, with plans in place to introduce more tokenized stocks regularly. However, it is important to note that these tokens do not confer ownership, dividends, or shareholder rights. They are not registered securities and are not available to residents of the US, UK, EU, or other restricted jurisdictions.
xStocks, the platform developed by Backed Finance, offers tokenized versions of popular US stocks and ETFs. These blockchain-based tokens enable users to represent the value of a portfolio of traditional equities. Backed Finance announced the launch of xStocks in late May as a tool designed for integration into DeFi protocols, allowing users to utilize xStocks as collateral in lending platforms or other crypto applications.
Operating on the blockchain provides tokenized stocks with several advantages over traditional stock trading, including 24/7 availability to users outside the US. The future of digital stock trading is deemed to be already present with the introduction of these tokenized stocks, offering fractional ownership, 24/7 global access, and near-instant settlement via blockchain technology.
Trades for these tokenized stocks can be conducted directly using USDT, with transactions completing within seconds. There are no secondary broker accounts or additional broker fees, and the tokenized stocks are backed by real-world assets (RWAs) while ensuring full ownership and transparency through blockchain technology.
Adam O’Neill, Chief Marketing Officer at Bitrue, expressed the exchange’s commitment to breaking down barriers in traditional finance that often exclude smaller investors. With the introduction of tokenized stock trading via xStocks, users now have a new avenue to diversify their portfolio and potentially earn real returns.
In conclusion, Bitrue’s launch of tokenized stock trading for US equities through xStocks represents a significant step towards bridging the gap between traditional finance and the crypto world, providing users with innovative ways to participate in the global market.