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Traditional stock markets and crypto markets have long operated in separate environments, with different infrastructure, hours and gatekeepers, and distinct regulatory requirements. Tokenized stocks merge these two asset classes by placing representations of real-world equities and ETFs directly on blockchain platforms, enabling such assets to be traded with a crypto wallet at any time.
This development is part of the broader real-world asset (RWA) tokenization trend, which is bringing everything from government bonds to commodities and real estate onto blockchains. Bybit has moved into this space through a partnership with Backed Finance, listing xStocks — tokenized equities backed 1:1 by real underlying assets — on its Spot market.
Key Takeaways:
Tokenized stocks are blockchain-based tokens that track real-world equities and ETFs, with the underlying assets held in regulated custody on a 1:1 basis.
Unlike traditional equities, tokenized stocks trade on crypto infrastructure, requiring no brokerage account, fixed market hours or standard settlement delays.
Bybit users can access tokenized US stocks and ETFs through xStocks on both the Spot market and Bybit Alpha, funded directly from their Unified Trading Account (UTA).