Backpack joins race for 24/7 stock markets with tokenized equities
Backpack, a crypto exchange, has launched 24/7 trading for select tokenized US equities, allowing international investors to trade stocks including SpaceX, Micron, and SanDisk around the clock.
Intelligence analysis by Llama
Backpack has expanded its tokenized equities offering to include 24/7 trading for select US stocks, including SpaceX, Micron, and SanDisk. The service is available to investors in over 150 countries and regions.
Imagine you want to buy a piece of a company, like SpaceX. Normally, you'd have to wait until the stock market opens to buy it. But now, with Backpack's new service, you can buy it 24 hours a day, 7 days a week. This makes it easier for people all around the world to invest in companies they like.
Analysis
A $60B Vote of Confidence
Backpack's launch of 24/7 trading for tokenized US equities is a significant development in the crypto space. The service allows international investors to trade stocks including SpaceX, Micron, and SanDisk around the clock, potentially increasing market liquidity and accessibility. This move is a vote of confidence in the tokenized equities market, which has grown from $379 million to $1.85 billion over the past year.
The tokenized stock market has seen significant growth in recent months, with distributed value climbing 28.6% over the past 30 days and monthly transfer volume surging over 85% to $8.76 billion. Crypto exchanges have led much of this growth, with Kraken, Bybit, and Bitget integrating tokenized equity offerings into their platforms. Traditional exchanges have also embraced tokenization, with Nasdaq and the New York Stock Exchange partnering with Securitize to develop 24/7 platforms for tokenized stocks and ETFs.
Backpack's service is available to investors in over 150 countries and regions, with trades settling instantly and funded in fiat currency or stablecoins. The company has also offered Solana-based tokenized versions of the securities, which can be transferred between wallets, used in decentralized finance applications, and converted 1:1 into the corresponding shares through Backpack.
The launch of 24/7 trading for tokenized US equities by Backpack is a significant development in the crypto space, potentially increasing market liquidity and accessibility for international investors.
Key points
- Backpack has launched 24/7 trading for select tokenized US equities
- The service is available to investors in over 150 countries and regions
- Trades settle instantly and are funded in fiat currency or stablecoins
- Backpack has also offered Solana-based tokenized versions of the securities
If Backpack's 24/7 trading for tokenized US equities is successful, it could lead to increased market liquidity and accessibility for international investors. This could also lead to more companies issuing tokenized equities, potentially increasing the overall size of the tokenized stock market.
However, there are also potential risks associated with Backpack's new service. For example, if the service is not properly regulated, it could lead to market manipulation or other forms of financial crime. Additionally, if the service is not widely adopted, it could lead to a lack of liquidity and make it difficult for investors to buy and sell tokenized equities.
