The Backed tokenization protocol has listed a new range of tokenized shares backed one-to-one by shares of some of the world's largest companies.
Based provides a bridge between traditional finance (TradFi) and decentralized finance (DeFi) through its tokenization services.
The blockchain protocol operates under the Swiss Distributed Ledger Technology (DLT) Act, allowing it to issue backed tokens (bTokens) that reflect the value of various assets, including treasury ETFs, corporate bond ETFs, and stocks.
New offerings include bMSFT (Microsoft (NASDAQ:)), bGME (GameStop (NYSE:)), bMSTR (MicroStrategy Incorporated (NASDAQ:)), bTSLA (Tesla (NASDAQ:)), and bGOOGL (Alphabet (NASDAQ:)). It allows eligible non-US investors to gain exposure to companies while keeping their assets on-chain and in self-custody.
“Backed is leading the way into the future of finance, where blockchain technology converges with the stability and familiarity of traditional financial assets,” Adam Levi, co-founder of Backed, told Investing.com.
“Our tokenized stocks, which have now expanded to include industry giants like Microsoft, Google, and NVIDIA (NASDAQ:), represent a monumental leap toward a future where capital markets are fully tokenized, enabling greater market access, all on-chain. This has a particular impact on emerging economies in Latin America, Africa, and Southeast Asia, where demand for U.S. stocks is increasing, but access often remains limited.”
As more assets move on-chain, asset managers will likely develop strategies to access new sources of liquidity and arbitrage between on- and off-chain markets. They can apply fundamental portfolio construction principles and manage investment strategies in a digital asset context.
These new tokenized shares add to Backed's existing products such as Backed CSPX Core S&P 500 (bCSPX), Backed Coinbase Global (bCOIN) (NASDAQ:) and backed by NVIDIA (bNVDA). The products enable accredited investors to take advantage of the benefits of equities with the convenience of 24/7 trading on blockchain infrastructure.
Each tokenized share is fully backed by the corresponding stock to give investors the confidence to trade on-chain. This also simplifies access to a broad spectrum of assets, eliminating the need for off-ramp funds. Backed’s tokenized shares are also designed to appeal to crypto organizations looking for diversification while keeping assets on-chain.
“Tokenization breaks down these barriers and offers a more inclusive, efficient and transparent way to invest globally,” Levi told us.
In addition to stocks, Backed offers tokenized corporate and government bonds, including Treasury bills. The introduction of five new tokenized stocks allows users to build a diversified on-chain portfolio. Blockchain ledgers will handle legal ownership, enabling composability, interoperability, and self-custody.
Backed’s tokenized shares are also designed for use in decentralized finance, where they can serve as collateral for loans and money markets, including stablecoins. The introduction of bMSFT, bGME, bMSTR, bTSLA, and bGOOGL increases the opportunities for developers to create new products based on these digital assets.
