Backed Finance introduces xBridge, a new cross-chain bridge designed to move tokenized stocks across blockchains without losing track of stock splits, dividends or other corporate actions.
Unveiled 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 Friday.
These tokens are backed 1:1 by real-world stocks or ETFs and mimic their on-chain behavior, including how they react to events such as a stock split or dividend payment.
xBridge uses Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to ensure that when a token moves from one chain to another, its connection to the underlying asset and its behavior remain intact.
“For years, cryptocurrencies had either permissionless native digital assets or RWAs locked behind walled gardens,” said Yotam Katznelson, CTO and COO of Backed. “With xStocks, we brought tokenized stocks into permissionless DeFi, and now with xBridge, we close the loop: tokenized stocks can finally flow as freely as any other crypto asset:”
On Ethereum, balances are scaled with an updatable multiplier. On 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’s xStocks are already available on a number of cryptocurrency trading platforms, including major centralized exchanges. One such exchange, 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.
