Product Keynote: Backed Finance (Adam Levi)

Backed Finance just dropped bombshell news at Breakpoint 2025: Kraken has acquired the company, and a wave of new features is set to transform how traditional financial assets move on-chain. With 180 million dollars in assets under management and 50,000 unique holders, XSTOCKS is proving that tokenized stocks have found their home on Solana.

Summary

Adam Levi, co-founder of Backed Finance, took the stage to unveil the next chapter for XSTOCKS, the tokenized stock product that launched just seven months ago in partnership with Kraken. Since its debut at Solana Accelerate in May, the product has achieved remarkable traction, accumulating $180 million in AUM and processing over $12 billion in trading volume.

The biggest revelation came early: Kraken has acquired Backed Finance entirely. This acquisition brings significant resources and reach to the XSTOCKS ecosystem, positioning it for what Levi described as "the next big leap" in changing traditional finance. The move signals major crypto exchanges are betting heavily on real-world asset tokenization.

Levi outlined a comprehensive strategy targeting three distinct market segments: crypto natives who build and innovate, underbanked populations lacking access to traditional financial assets, and institutions seeking efficient on-chain exposure. Each segment receives tailored solutions, from composable DeFi products to simple Telegram wallet integration.

The announcements included immediate launches: Xbridge for cross-chain movement powered by Chainlink's CCIP infrastructure, and Export, a new feature allowing institutions to exchange physical shares directly for tokenized equivalents. These developments represent significant infrastructure improvements that could accelerate institutional adoption of tokenized securities on Solana.

Key Points:

Kraken Acquisition Changes the Game

Last week, Backed Finance announced its acquisition by Kraken, one of the largest cryptocurrency exchanges globally. This merger brings substantial resources, regulatory expertise, and distribution capabilities to the XSTOCKS product line. For Backed, this means access to Kraken's millions of users and institutional relationships. For the Solana ecosystem, it signals that major players view tokenized real-world assets as a strategic priority worth acquiring companies to pursue.

The acquisition validates the product-market fit that XSTOCKS has demonstrated since its May launch. With $12 billion in trading volume achieved in just seven months, institutional interest in compliant, accessible tokenized stocks appears to be accelerating. Kraken's backing should help navigate the complex regulatory landscape surrounding securities tokenization while expanding global reach.

Xbridge Launches with Chainlink CCIP

Backed Finance announced the immediate launch of Xbridge, enabling XSTOCKS to move seamlessly between different blockchain networks. Built on Chainlink's Cross-Chain Interoperability Protocol (CCIP), this infrastructure represents a critical upgrade for token usability and liquidity.

Cross-chain bridges are essential for DeFi composability, allowing tokenized assets to access liquidity and applications across multiple ecosystems. By partnering with Chainlink for this functionality, Backed ensures institutional-grade security and reliability. This move makes XSTOCKS more versatile, enabling holders to leverage their tokenized stocks across whichever blockchain offers the best opportunities at any given time.

Composable Products Enable DeFi Innovation

Levi emphasized that the most exciting developments come from builders creating second-layer products on top of vanilla XSTOCKS. He highlighted two examples already live: Communal Multiply, which enables leveraged positions like 3X Tesla or 3X S&P 500 exposure, and Lore Mag7, a basket product mimicking a Magnificent 7 ETF that launched the same day.

This composability represents the true promise of tokenized securities on DeFi rails. Traditional finance would require complex derivatives, multiple accounts, and significant capital to achieve similar exposure. On Solana with XSTOCKS, builders can create these products permissionlessly, and users can access them through familiar interfaces like Jupiter. Backed explicitly invited developers to reach out for support building on top of their infrastructure.

Telegram Integration Targets the Underbanked

For billions of people worldwide without adequate access to traditional financial services, XSTOCKS via Telegram's built-in wallet offers a revolutionary entry point. Levi noted that these users aren't crypto natives—they're Web2 users familiar with messaging apps but excluded from stock markets due to geography, documentation requirements, or minimum investment thresholds.

The Telegram wallet integration means anyone with the app can potentially access tokenized versions of stocks like Tesla or S&P 500 index funds. Levi described the user experience as "really amazing" and emphasized the life-changing potential for underserved populations. This represents a fundamental democratization of financial market access, bypassing traditional gatekeepers entirely.

Export Feature Opens Institutional Floodgates

Perhaps the most significant infrastructure announcement for institutional adoption was Export, developed in partnership with Alpaca. Previously, XSTOCKS issuance and redemption required stablecoins or fiat currency. Export changes this by enabling "in-kind" transfers—institutions can now send physical shares to receive tokenized equivalents, and vice versa.

This capability dramatically reduces friction for traditional finance players. Portfolio managers, family offices, and funds can now move existing equity positions on-chain without liquidating them, avoiding taxable events and maintaining market exposure throughout the process. For redemption, they can exit to traditional custody seamlessly. This bidirectional flow between traditional and crypto rails is what Levi called "internet capital markets" coming to life.

Facts + Figures

• XSTOCKS has crossed $180 million in assets under management since launching in May 2025
• Trading volume has exceeded $12 billion across the XSTOCKS ecosystem
• Over 50,000 unique holders now own XSTOCKS tokens
• Kraken has acquired Backed Finance, announced the week prior to Breakpoint
• Xbridge launched same-day, enabling cross-chain XSTOCKS transfers via Chainlink CCIP
• Ecosystem partners include Bybit, Gate, Raydium, Solflare, Phantom, and Burrall
• Lore Mag7, a Magnificent 7 basket product, launched the day of the announcement
• Export feature enables in-kind share transfers for institutional clients via Alpaca partnership
• XSTOCKS is accessible through Telegram's integrated wallet for Web2 users
• The product originally launched at Solana Accelerate in May 2025

Top Quotes

• "We believe this will help us make the next big leap in order to change finance and give us the right resources in order to grow XSTOCKS."

• "For me, the most important metric, I think, is actually 50,000 unique holders. And that's really amazing and changing finance."

• "If you're builders, as I know you are, and if you want to build on top of XSTOCKS, please contact us, and we will do whatever we can in order to help you."

• "These people, they don't have good access to financial assets, but they're like Web2 users. They're not crypto natives. They have Telegram."

• "For the first time, these people will have access to traditional financial assets. And we believe this can change their life."

• "We believe that this can bring the institutions into the XSTOCKS ecosystem and change the world. And what we call here in Solana, internet capital markets."

Questions Answered

What is XSTOCKS and how does it work?

XSTOCKS is a tokenized stock product issued by Backed Finance that allows users to hold and trade representations of traditional equities like Tesla and S&P 500 index funds on the Solana blockchain. The product launched in May 2025 as a partnership with Kraken and has since grown to $180 million in assets under management. Users can acquire XSTOCKS through exchanges, DEXs, or the Telegram wallet, and trade them 24/7 with instant settlement—features impossible in traditional stock markets.

What does Kraken's acquisition of Backed Finance mean for XSTOCKS?

Kraken's acquisition provides Backed Finance with significant resources, regulatory expertise, and distribution channels to accelerate XSTOCKS adoption. The deal, announced the week before Breakpoint 2025, positions XSTOCKS to scale beyond its current ecosystem partners to potentially reach Kraken's millions of existing users. This institutional backing also provides credibility and stability that may encourage more conservative investors to consider tokenized securities.

How can XSTOCKS move between different blockchains?

Xbridge, launched at Breakpoint 2025, enables XSTOCKS to transfer between different blockchain networks using Chainlink's Cross-Chain Interoperability Protocol (CCIP). This infrastructure allows holders to access liquidity and DeFi applications across multiple chains while maintaining exposure to their tokenized stocks. The Chainlink partnership ensures institutional-grade security for these cross-chain transfers.

What products can be built on top of XSTOCKS?

Developers can create composable financial products using XSTOCKS as building blocks. Examples include Communal Multiply, which offers leveraged positions like 3X exposure to Tesla or the S&P 500, and Lore Mag7, a basket product similar to a Magnificent 7 ETF. These second-layer products are accessible through familiar DeFi interfaces like Jupiter, enabling complex financial strategies that would require significant capital and multiple accounts in traditional finance.

How can underbanked populations access XSTOCKS?

Backed Finance has integrated XSTOCKS into Telegram's built-in wallet, making tokenized stocks accessible to anyone with the messaging app. This targets billions of people worldwide who lack access to traditional brokerage services due to geographic, documentation, or minimum investment barriers. Users simply need Telegram—no crypto expertise required—to potentially access assets like Tesla stock or S&P 500 index funds for the first time.

What is the Export feature and why does it matter for institutions?

Export is a new capability developed with Alpaca that allows institutional clients to exchange physical shares directly for XSTOCKS tokens, and vice versa for redemption. Previously, issuance and redemption required stablecoins or fiat currency. This in-kind transfer mechanism eliminates friction for traditional finance players, allowing them to move existing equity positions on-chain without liquidation events, making institutional adoption significantly easier.