The decentralized stock tokenization platform xStocks, developed by Backed, has made waves in the financial technology space by achieving a remarkable $7.73 million in trading volume within just three days of launch**. According to data from Dune Analytics, the platform is experiencing strong early adoption, with the S&P 500 index derivative emerging as the most actively traded asset, accounting for **$4.25 million of the total volume. Tesla and Circle tokenized stocks followed in second and third place, respectively.
This rapid growth underscores the rising demand for on-chain access to traditional financial assets, blending the transparency of blockchain with the familiarity of equities and indices. As more users seek exposure to real-world assets (RWAs) through crypto-native interfaces, platforms like xStocks are positioning themselves at the forefront of the tokenized asset revolution.
👉 Discover how tokenized stocks are reshaping global investing—click to explore more.
User Activity and Trading Trends
Despite the impressive trading figures, daily active users (DAU) on xStocks saw a slight dip to 4,215 users on the third day, down from previous highs. However, this was accompanied by 14,560 transactions, suggesting that while user numbers may fluctuate, engagement per user remains high. The average transaction value sits around $530, indicating participation from both retail and potentially institutional-grade investors.
The dominance of the S&P 500 tokenized product highlights investor preference for diversified market exposure rather than single-stock speculation. This aligns with broader trends in traditional finance, where index-based investing continues to outpace individual equity trading due to lower risk and better long-term performance.
Why Tokenized Stocks Are Gaining Traction
Tokenized stocks represent real shares of public companies or indices but are issued as blockchain-based digital assets. They offer several advantages:
- 24/7 trading: Unlike traditional markets limited by business hours, tokenized stocks trade around the clock.
- Global accessibility: Investors worldwide can gain exposure without needing a U.S.-based brokerage account.
- Faster settlement: Built on blockchain rails, settlements occur in minutes instead of T+2 days.
- Transparency and auditability: All transactions are recorded on-chain, enhancing trust and reducing counterparty risk.
These benefits are driving interest not only among crypto-native traders but also among traditional investors looking for more efficient ways to diversify.
Market Context: Broader Crypto and Economic Developments
While xStocks captures attention in the RWA sector, broader market dynamics are also shaping investor sentiment.
Binance Sees Strong Buy Pressure Ahead of NFP Data
CryptoQuant reported that Binance’s net buy volume exceeded $100 million ahead of the U.S. non-farm payroll (NFP) data release. The June report showed a stronger-than-expected 147,000 new jobs, surpassing forecasts of 110K–118K, while the unemployment rate dropped to 4.1%, the lowest since February. This economic resilience has increased expectations that the Federal Reserve will hold rates steady in July—now priced in at 95% probability—supporting the U.S. dollar but potentially weighing on risk assets like Bitcoin.
👉 See how macroeconomic data influences crypto markets—get real-time insights here.
Smart Money Shifts Focus to Ethereum
Chainalysis data reveals that a well-known "smart money" wallet recently opened a 25x leveraged long position on Ethereum (ETH) via Hyperliquid, purchasing 2,638.7 ETH at an average price of $2,545.74**, valued at over **$6.7 million. This follows earlier moves where the same entity exited Bitcoin longs and increased Solana (SOL) exposure.
Notably, this trader has accumulated over $15.92 million in lifetime profits** on Hyperliquid, with **$7.62 million earned in just seven days, signaling aggressive positioning amid market consolidation.
Regulatory and Infrastructure Developments
Moody’s Warns Japan Election Could Impact Fiscal Health
Moody’s has cautioned that Japan’s upcoming July 20 upper house election could affect its sovereign credit rating if proposed tax cuts are enacted without offsetting fiscal measures. With inflation relief measures like cash handouts under discussion, any significant increase in government spending could strain Japan’s already high debt-to-GDP ratio.
Christian de Guzman, Moody’s sovereign risk lead, emphasized that the scale and duration of any tax reductions would be key factors in determining whether a downgrade follows.
Zypher Network Raises $7M for AI and Web3 Trust Infrastructure
Zypher Network, a decentralized trust platform leveraging zero-knowledge proofs and its proprietary rollup infrastructure called Zytron, has secured $7 million in funding. The round was co-led by UOB Venture and Signum Capital, with participation from HashKey Capital, Hong Leong Group, and others.
The project aims to provide verifiable autonomy for AI agents operating in Web3 environments—an emerging need as AI-driven protocols become more prevalent in decentralized finance (DeFi) and autonomous systems.
Exchange Updates
Binance Launches BULLAUSDT and IDOLUSDT Perpetual Contracts
Binance Futures has introduced two new perpetual contracts:
- BULLAUSDT (launched at 17:00 UTC)
- IDOLUSDT (launched at 17:15 UTC)
Both support up to 50x leverage, USDT settlement, 24/7 trading, and a maximum funding rate of ±2.00%.
- BULLA is the official mascot of BullX, a popular trading community.
- IDOL is the core utility token of MEET48, powering AI entertainment platforms, metaverse experiences, and Web3 applications.
Bithumb Flags STRIKE for Disclosure Issues
South Korea’s Bithumb exchange has designated STRIKE as a “trading warning” asset following a decision by the Digital Asset Exchange Association (DAXA). The move stems from inadequate disclosure practices and insufficient investor protection mechanisms. From July 4, 2025, at 16:00 KST, STRIKE deposits were suspended, signaling tighter regulatory scrutiny over project transparency.
Frequently Asked Questions (FAQ)
What is stock tokenization?
Stock tokenization involves creating blockchain-based digital tokens that represent ownership in real-world equities or indices. These tokens mirror price movements of the underlying asset and allow for decentralized trading without relying on traditional brokers.
How does xStocks ensure compliance with financial regulations?
While specific compliance details are not fully disclosed, platforms like xStocks typically operate through legal wrappers such as special purpose vehicles (SPVs) that hold actual shares, issuing synthetic exposures on-chain. Regulatory oversight varies by jurisdiction, so users should conduct due diligence before investing.
Are tokenized stocks safe to trade?
Tokenized stocks carry both technological and regulatory risks. While they offer transparency via blockchain, they depend on custodians to hold real shares and may face delisting or suspension if compliance issues arise. Always assess counterparty risk and platform credibility.
Can I redeem my tokenized stock for an actual share?
In most cases, redemption is not available to retail users. Tokenized stocks are usually synthetic derivatives designed for price exposure rather than ownership rights like dividends or voting.
What drives smart money behavior in crypto markets?
Smart money—often referring to whales or experienced traders—tends to act based on macroeconomic signals, funding rates, exchange flows, and technical patterns. Their moves are closely watched as potential leading indicators.
How do I start trading tokenized assets?
You can begin by using supported platforms that offer tokenized stocks or indices. Ensure the platform is reputable, supports secure wallets, and provides clear information about asset backing and settlement mechanisms.
The rise of xStocks reflects a growing convergence between traditional finance and decentralized ecosystems. As real-world asset tokenization matures, platforms enabling seamless access to global markets will play a pivotal role in democratizing investment opportunities.
👉 Start exploring tokenized assets today—unlock new financial frontiers now.