Backed Finance introduces xBridge, a new cross-chain bridge designed to move tokenized stocks across blockchains without losing sight of stock splits, dividends, or other corporate actions.
Introduced at Solana Breakpoint and built in partnership with Chainlink, xBridge allows users to transfer tokenized stocks, called xStocks, between Ethereum and Solana, according to an emailed announcement on Friday.
These tokens are backed 1:1 by real-world stocks or ETFs and mimic their on-chain behavior, including how they respond to events like a stock split or dividend payout.
xBridge uses Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to ensure that when a token moves from one chain to another, its link to the underlying asset and its behavior remain intact.
“For years, cryptocurrencies had native permissionless digital assets or RWAs locked behind walled gardens,” said Yotam Katznelson, CTO and COO at Backed. “With xStocks, we introduced tokenized stocks into permissionless DeFi, and now with xBridge, we are coming full circle: tokenized stocks can finally flow as freely as any other crypto asset:”
On Ethereum, balances are scaled with an updateable multiplier. At Solana, they rely on Token2022 and automatic rebasing. But the result is the same: token balances are updated to reflect splits or dividend events, even after crossing chains.
Backed xStocks are now available on several cryptocurrency trading platforms, including major centralized exchanges. One of those exchanges, Kraken, acquired Backed Finance earlier this month.
With the bridge in pilot mode, Backed plans to add support for Mantle, TRON, and other blockchains in the coming weeks.
