BNB Chain could see more interest from TradFi investors

BNB Chain will soon have tokenized securities with the expansion of xStocks to the blockchain network. The platform announced the expansion on July 9, noting that it is the first launch of tokenized stocks on an EVM-compatible chain.

According to a platform backed by crypto exchange Kraken and tokenization infrastructure provider Backed, the xStocks will be deployed as BEP-20 tokens on the BNB chain.

The plan is to initially deploy 20 tokenized securities on BNB Chain, including the tokenized versions of the stocks of companies such as Apple, Nvidia, and Tesla. Indexes such as the S&P 500 and some exchange-traded funds (ETFs) are also on the list.

The announcement reads:

“By expanding to BNB Chain, xStocks continues its mission to meet users where they are – bringing traditional equities onchain and opening access for underserved markets around the world.”

With the move, BNB Chain joins Solana, where xStocks initially launched a few weeks ago and immediately gained traction as many users embraced on-chain tokenized securities. The positive feedback appears to be a major deciding factor in expanding to other networks.

For now, users of Kraken exchange in eligible jurisdictions can trade their xStocks directly through the BNB Chain. According to the announcement,  the product offers several perks, including instant trading, 24/7 access to the markets, and the ability to buy fractionalized stocks on-chain.

BNB Chain could see more interest from TradFi investors

BNB Chain joining the alliance represents a positive development for the network, which is already seeing a massive boost in its on-chain activity. Kraken’s announcement further highlighted why it has chosen BNB Chain, noting that its performance, low fees, and size as one of the biggest blockchain ecosystems based on on-chain activity make it ideal.

BNB Chain boasts over $10 billion in total value locked (TVL) and has seen a surge in decentralized exchange (DEX) transactions in the past few months, enabling it to compete with and even outdo Solana in transaction volume.

Last month, BNB Chain had its highest transaction volume in a month with over $160 billion. Defillama data shows that DEX volume in the last 30 days is around $178 billion, with Solana having far less at $61 billion.

While this growth has been fueled mostly by the Binance Alpha program, which allows BNB users to gain exposure to early-stage projects, the introduction of tokenized securities on the network could see it attract more TradFin investors who want to buy stocks without leaving the Web3 ecosystem.

Meanwhile, the network native token  BNB saw a slight jump in its value over the last 24 hours, enough to maintain its steady performance over the past few weeks. The token has been one of the most resilient altcoins this year, losing only 6% of its value year-to-date, while other tokens such as SOL and ETH have seen more decline.

Tokenization continues to attract interest and capital

Backed expansion to BNB Chain also highlights the massive growth of on-chain tokenization even without regulatory clarity.  Stakeholders from traditional financial institutions like BlackRock to fintech companies like Robinhood and crypto-native firms like Kraken have all embraced tokenization.

Their interest in the sector is backed by the clear market opportunity from users keen to adopt on-chain tokenized assets. Kraken co-CEO Arjun Shetty best captured this, noting that the market response to xStocks clarified that the future of capital markets will be multi-chain.

He said:

“Expanding to BNB Chain reinforces our core belief that tokenized equities are not just digital wrappers for traditional assets – they are a foundational upgrade to the financial system itself.”

Meanwhile, experts believe tokenization is the next frontier to unlock liquidity in the financial markets and increase accessibility for the masses. The Real world assets (RWA) sector already has a value of $25.16 billion with a 7.55% rise over the last 30 days, while the number of asset holders is now 285,260, following an 81.11% increase.

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