- New compliance solution allows crypto exchanges in Europe to offer tokenized US stocks.
- Assetera, an Austrian trading platform, provides regulatory access to xStocks from Backed Finance.
- Exchanges like Kraken and Bybit began offering xStocks in June, with some regional exclusions.
- Assetera offers regulatory compliance through a simple API across 30 European countries.
- Tokenized stocks trade peer-to-peer, with liquidity depending on matched buyers and sellers.
Assetera, an Austrian trading platform regulated under MiFID, has launched a new solution to help cryptocurrency exchanges in Europe offer tokenized US stocks. The company provides direct access to xStocks, a product from Backed Finance, through regulatory compliance in 30 European countries.
In June, exchanges such as Kraken and Bybit started offering xStocks. Kraken‘s service excludes users in the US, Canada, UK, EU, and Australia. Assetera says its API helps exchanges comply with regulations quickly and efficiently.
“The demand from exchanges is unprecedented,” said Thomas Labenbacher, CEO and Founder of Assetera. “We’re speaking with the top exchanges because they all recognize that tokenized securities represent the future of their business, but regulatory barriers have made it nearly impossible within a competitive timeframe.”
“We solve this by providing regulatory compliance through a simple API integration. Even exchanges with existing MiFID licenses are choosing our solution because it’s faster and more efficient than building their own infrastructure.” Assetera manages compliance, trade settlement, and custody for tokenized assets, covering more products than xStocks, such as money market funds.
Unlike traditional stock exchanges, Assetera runs peer-to-peer trading. This means buyers and sellers trade directly with each other, without market makers setting prices or providing liquidity. Tokenized stocks can trade at any hour, but liquidity depends on matching counterparties. Cooperation with multiple exchanges may help improve market depth.
Europe has several competing platforms for tokenized stocks. Robinhood launched its own version using a license from Lithuania. As a major US platform, Robinhood is a much larger issuer compared to Backed Finance. However, Robinhood‘s tokens are derivatives, meaning investors do not have ownership rights if manufacturers have problems.
In contrast, Backed Finance bases its tokens on real stocks, backing them on a one-to-one basis and offering investors some protection through liens on underlying assets. The system includes multiple layers: tokenization under Swiss law, collateral held in Switzerland, an issuer in Jersey, and regulatory approvals from Liechtenstein. While this setup gives more protection, it also adds complexity.
Tokenized securities in Europe are still complicated and involve risks. However, current offerings show progress in improving investor safety. As the sector grows, it continues to evolve toward more secure options for retail investors.
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