Based provides a bridge between traditional finance (TradFi) and decentralized finance (DeFi) through its tokenization services.
The blockchain protocol runs under the Swiss Distributed Ledger Technology (DLT) Act, enabling it to issue Backed tokens (bTokens) that mirror the value of various assets, including treasury ETFs, corporate bond ETFs, and equities.
The new offerings include bMSFT (Microsoft (NASDAQ:MSFT)), bGME (GameStop (NYSE:GME)), bMSTR (MicroStrategy Incorporated (NASDAQ:MSTR)), bTSLA (Tesla (NASDAQ:TSLA)), and bGOOGL (Alphabet (NASDAQ:GOOGL)). It enables eligible non-US investors to gain exposure to S&P 500 companies while keeping their assets on-chain and self-custodied.
“Backed is leading the charge towards the future of finance, where blockchain technology converges with the stability and familiarity of traditional financial assets,” Adam Levi, Co-Founder of Backed, told Investing.com.
“Our tokenized equities, now expanded to include industry giants like Microsoft, Google, and NVIDIA (NASDAQ:NVDA), represent a monumental leap toward a future where capital markets are fully tokenized, enabling greater market access, all on-chain. This is especially impactful for emerging economies in LATAM, Africa, and SE Asia, where demand for U.S. equities is surging, but access often remains limited.”
As more assets move on-chain, asset managers will probably develop strategies to access new liquidity sources and arbitrage between on-chain and off-chain markets. They can apply fundamental portfolio construction principles and manage investment strategies in a digital asset context.
These new tokenized equities join Backed’s existing products such as Backed CSPX Core S&P 500 (bCSPX), Backed Coinbase Global (bCOIN) (NASDAQ:COIN), and Backed NVIDIA (bNVDA). The products allow accredited investors to capture the upside of the stocks with the convenience of 24/7 trading on blockchain infrastructure.
Each tokenized stock is fully backed by the corresponding stock to provide investors with confidence to trade on-chain. This also simplifies access to a broad spectrum of assets, eliminating the need for off-ramp funds. Backed’s tokenized stocks are also designed to attract crypto organizations seeking diversification while keeping assets on-chain.
“Tokenization breaks down these barriers, offering a more inclusive, efficient, and transparent way to invest globally,” Levi told us.
In addition to equities, Backed offers tokenized corporate and government bonds, including T-bills. The introduction of five new tokenized stocks lets users create a diversified on-chain portfolio. Blockchain ledgers will handle legal ownership, allowing for composability, interoperability, and self-custody.
Backed’s tokenized equities are also designed for use within decentralized finance, where they can serve as collateral for loans and money markets, including stablecoins. The introduction of bMSFT, bGME, bMSTR, bTSLA, and bGOOGL increases opportunities for developers to create new products anchored by these digital assets.
Source: Cryptocurrency - investing.com
