Backpack launches tokenized U.S. stocks 24/7 trading

Why did Backpack enter the tokenized stock market?

Cryptocurrency exchange Backpack has launched a 24/7 trading service for some tokenized U.S. stocks, allowing international investors to purchase stocks including SpaceX, Micron and SanDisk outside traditional market trading hours. The move puts Backpack into one of the fastest-growing areas of real-world assets (RWA) on the chain: tokenized stocks. These products are designed to give investors access to traditional stocks through blockchain-based infrastructure, while bringing settlement, transfers and collateral use closer to the standards of the cryptocurrency market.

Backpack said its first products provided investors with direct ownership of the underlying securities rather than synthetic exposure. Transactions can be settled instantly and can be funded using fiat or stablecoins. The company started with a limited selection of U.S. stocks and plans to add more stocks over time. According to the company, the service is open to investors in more than 150 countries and regions. Backpack said transactions are supported by liquidity from traditional exchanges, a detail that is critical because tokenized stocks still need to be connected with regulated stock market liquidity if they are to transcend the native user base of cryptocurrencies and achieve scale.

How does a Solana-based structure work?

Backpack also offers a tokenized version of Solana-based securities. These tokens can be transferred between wallets, used in decentralized finance (DeFi) applications, and can be exchanged for corresponding stocks through Backpack on a 1:1 ratio. This structure makes the product different from traditional brokerage accounts. Investors are buying more than just stock-linked exposure, they are also getting a blockchain-based asset that can be moved between wallets and potentially interact with the DeFi protocol. For native cryptocurrency users, this makes tokenized stocks more flexible than traditional stocks held within brokerage platforms.

The 1:1 redemption function is the core of this product design. It aims to maintain the link between the token and the underlying securities and reduce the risk of a token decoupling from the stocks it represents. The key question for investors is whether the redemption process can remain efficient during times of high demand, market pressure or limited liquidity. Backpack said its tokenized SpaceX stock has become the most actively traded tokenized version of the private rocket and artificial intelligence company since its launch in June. The company did not disclose trading volumes or provide comparisons with competitor products.

Investor Points

The launch of Backpack shows that cryptocurrency exchanges are trying to build tokenized stocks into a global, round-the-clock market. The main issue facing investors is not only access, but also how ownership, liquidity, redemption mechanisms and regulatory protections will be maintained once these products become large-scale.

Why are tokenized stocks growing so rapidly?

The launch of Backpack coincides with the accelerated expansion of tokenized stocks in cryptocurrency exchanges and traditional market infrastructure. According to data, in the past year, the size of the tokenized stock market has grown from approximately US$379 million to US$1.85 billion. Recent growth has been particularly rapid. In the past 30 days, distributed value has increased by 28.6%, while monthly transfers have increased by more than 85%, to US$8.76 billion. This increase suggests that demand for equity-linked assets that can be traded, settled and moved like cryptocurrencies is rising.

Cryptocurrency exchanges led early expansion. Some major platforms have expanded their tokenized stock services, and other exchanges have also integrated related products. Several platforms have also launched tokenized stock products, intensifying competition to serve global users seeking exposure to the U.S. market. The appeal is obvious: tokenized stocks can extend trading hours beyond U.S. market trading hours, reduce settlement frictions, and allow users to use stablecoins to fund transactions. For investors outside the United States, these products also provide an easier route to U.S. stocks, but availability still depends on local regulations and platform restrictions.

What changes will the intervention of traditional finance bring?

The tokenized stock market is no longer limited to crypto platforms. Traditional exchanges and market infrastructure providers are also moving into tokenization, which could change the credibility and scale of the industry. The U.S. Securities and Exchange Commission has approved a pilot project to trade tokenized stocks and traditional securities on the same exchange. At the same time, the New York Stock Exchange is also working with relevant institutions to develop a 24/7 platform for tokenizing stocks and ETFs. The American Depository, Trust and Clearing Corporation (DTCC) also announced plans to launch tokenized securities services in October after a pilot involving more than 50 financial and crypto companies. This is significant because DTCC is at the heart of the U.S. post-transaction market infrastructure, and its participation suggests that tokenization is moving from the experimental stage to the market infrastructure level.

For Backpack, the opportunity lies in competing early in a market where cryptocurrency exchanges still have product speed, stablecoin trajectory and global distribution advantages. The risk is that once regulated exchanges and clearing infrastructure enter the market, tokenized stocks may become more influenced by traditional financial institutions. The result is a competition between crypto-native platforms and traditional finance over how to define tokenized stock trading. Backpack\'s 24/7 model provides investors with broader access and faster settlements, but the long-term test will be whether tokenized stocks can provide liquidity, investor protection and reliable redemption on an institutional scale. mechanism.