The integration of traditional financial assets onto blockchain infrastructure continues to accelerate, with cryptocurrency exchange Backpack poised to become the first centralized platform to facilitate trading of SEC-registered U.S. equities on-chain. This groundbreaking initiative, developed in partnership with Superstate, a firm founded by Compound’s Robert Leshner, signifies a pivotal step towards bridging the gap between legacy capital markets and the decentralized digital asset ecosystem.
Bridging Traditional Equities and Blockchain
Backpack will incorporate Superstate’s Opening Bell platform, enabling users outside the United States to trade tokenized versions of publicly traded stocks. Crucially, these will not be synthetic instruments or derivatives, but actual shares identified by CUSIP numbers, mirroring the identifiers used on established exchanges like Nasdaq and NYSE. This ensures that holders of these tokenized securities possess the same rights as holders of their traditional counterparts, but with the added benefit of blockchain-based ownership and transferability, bypassing traditional brokerage intermediaries.
Enhanced Functionality and Investor Access
Robert Leshner highlighted the significant advantages of this approach for traders. The ability to use tokenized shares for collateral, coupled with more flexible margin capabilities, expands the utility of these assets. Furthermore, this innovation offers issuers direct access to a vast pool of crypto-native investors and a novel digital capital markets infrastructure, potentially streamlining capital formation and increasing market liquidity.
The Inevitable Evolution of Financial Markets
Mikel Ayala, Backpack’s Head of Business Development in Europe, views the tokenization of equities as an inevitable progression for financial markets. He contends that traditional capital market infrastructure has become inefficient and opaque due to decades of accumulated intermediaries and complex regulations. Blockchain technology, by enabling direct, transparent, and interconnected asset ownership, fundamentally addresses the risks inherent in the legacy system, positioning on-chain equities as a superior alternative to traditional market offerings.
A Growing Trend in Asset Tokenization
This development occurs against a backdrop of surging interest in the tokenization of traditional assets, including stocks, bonds, and funds. Recent months have seen notable players like Robinhood, Gemini, Ondo Finance, and Kraken (through its Backed Finance division) introduce their own tokenization solutions. The common objective across these ventures is to migrate the trading of financial instruments onto blockchain platforms, leveraging the latter’s inherent transparency and instant settlement capabilities.
Backpack’s Strategic Expansion and Regulatory Compliance
Founded by Arman Feruzan, Backpack has strategically positioned itself within the Solana ecosystem and acquired the European division of FTX. Since 2023, the company has been actively cultivating a regulated infrastructure. It has secured a Virtual Asset Service Provider license in Dubai and launched a regulated derivatives trading platform in the EU under Cypriot regulatory oversight, aligning with MiFID II standards. This focus on regulatory compliance underscores Backpack’s commitment to operating within established legal frameworks while pioneering innovative blockchain-based financial services.
Senior Crypto Correspondent with over 8 years of experience covering Bitcoin, altcoins, and blockchain technology for leading financial publications. Alexander holds a master’s degree in Financial Economics and specializes in in-depth market analysis, regulatory updates, and interviews with top industry figures.