Introducing the xBridge

Crypto was built on a vision of open finance: assets moving freely, integrated into apps and interacting with one another, unconstrained by middlemen. For years it had been restricted to native digital assets, and early tokenization efforts were walled gardens. xStocks was the first large-scale product to incorporate tokenized equities into crypto, permissionlessly. We complete the vision with xBridge.

xBridge is built with the Chainlink Cross-Chain Interoperability Protocol (CCIP) as its cross-chain infrastructure, leveraging CCIP’s built-in compliance and privacy capabilities and xStocks’ unique properties for handling corporate actions into a single, modern bridge. For users, it’s a secure and simple way of transferring tokenized equities across blockchains, but under the hood, it was a technical challenge.

Building the xBridge

xStocks are no ordinary tokens. While most cryptocurrencies are engineered for immutability, decentralization, and simplicity, equities represent a fundamentally different asset class with their own complexities. They distribute dividends regularly, undergo stock splits from time to time, and are subject to a range of other corporate actions. Beyond mere regulatory compliance, integrating these features while keeping tokens 1:1 backed and accurately tracking the price of the underlying asset required a unique token architecture.

On Solana, this was achieved through the new Token2022 token standard. Through the Multiplier on Scaled UI, a Shares Model was incorporated into xStocks. When dividends are distributed, rebasing is used to reflect this onchain, increasing the holdings of users at a set Activation Time without changing the price of the token. Similarly, stock splits work by increasing user holdings while keeping their overall value.

On Ethereum, the design is different, using a custom multiplier-based rebasing architecture. Each token tracks user holdings as "shares" internally, while displaying balances scaled by a multiplier value. When a corporate event occurs, an authorized updater adjusts the multiplier, and all holder balances update automatically without requiring any transfers. This achieves the same result as Solana's Token2022, but through a bespoke smart contract design rather than a standardized extension.

Connecting the two required a solution as elegant (and demanding) as structuring the tokens in the first place. The xBridge translates between Solana's Token2022 multiplier model and Ethereum's custom rebasing architecture, ensuring that corporate actions remain synchronized across chains. When tokens cross the bridge, the system preserves not just the balance, but the underlying share representation, so that a stock split on one chain is reflected accurately on the other, maintaining perfect 1:1 backing regardless of where tokens reside.

The xBridge comes just in time for the xStocks expansion into Mantle, TRON, and other blockchains, allowing deep liquidity flows on day one and opening the path for the gold standard for tokenized equities on Solana and Ethereum to become the standard everywhere. The bridge is now live in pilot, with full rollout in the coming weeks. Access it here: https://defi.xstocks.fi/bridge

The future is open, composable, and omnichain.

xStocks are not marketed, offered, or solicited in the United States or in any other prohibited jurisdiction. The information provided does not constitute an offer or solicitation to buy or sell any financial product directly from us or any of our partners. Investing in xStocks involves risk. Backed does not provide investment advice, and individual investors are encouraged to seek professional independent advice before any investment in xStocks. For a full list of prohibited and restricted countries and review of legal documentation, please visit https://assets.backed.fi/legal-documentation