Introducing xBridge: Seamless Cross-Chain Transfer of Tokenized Stocks Between Solana and Ethereum

Backed Finance has launched xBridge, a cutting-edge cross-chain bridge designed to facilitate the transfer of tokenized stocks between blockchain networks, ensuring accurate tracking of corporate actions such as stock splits and dividends. Unveiled at Solana Breakpoint, this innovative solution was developed in collaboration with Chainlink, enabling the seamless transfer of tokenized equities, known as xStocks, between the Ethereum and Solana blockchains. These tokens are fully backed by real-world stocks or ETFs and replicate their on-chain behavior, including responses to events like stock splits or dividend payouts. The xBridge platform utilizes Chainlink's Cross-Chain Interoperability Protocol (CCIP) to maintain a stable link between the transferred token and its underlying asset, ensuring consistent behavior across chains. According to Yotam Katznelson, CTO and COO of Backed, 'The introduction of xStocks has brought tokenized equities into the DeFi ecosystem in a permissionless manner, and with xBridge, we have completed the cycle, enabling tokenized stocks to flow freely like any other crypto asset.' On the Ethereum network, balances are scaled using an updatable multiplier, while on Solana, they rely on Token2022 and automatic rebasing, resulting in token balances that update to reflect splits or dividend events, even after crossing chains. Backed's xStocks are already available on several cryptocurrency trading platforms, including major centralized exchanges like Kraken, which recently acquired Backed Finance. With the bridge currently in pilot mode, Backed plans to expand support to additional blockchains, including Mantle and TRON, in the coming weeks.