Kamino Now Accepts Tokenized Stocks as Collateral

Kamino, a lending platform built on the Solana blockchain, is now the first decentralized finance (DeFi) project to accept tokenized stocks as collateral. This move is a big step for the DeFi sector, helping connect traditional finance like stock markets with blockchain technology. The feature is powered by xStocks, a tool that brings traditional equities on-chain using Chainlink’s data standard. Kamino Launches xStocks Market with Apple Token Kamino Finance recently revealed it has launched a new feature called the xStocks Market as part of its Kamino v2 upgrade. The feature will allow users to borrow stablecoins by using tokenized stocks as collateral. As announced, this initiative will start with a token version of Apple stock, called AAPLx. The team plans to add more major stocks in the future. According to the Kamino team, the long-term goal is to build a full suite of on-chain asset marketplaces. In this marketplace, users will be able to swap between different assets, borrow funds using their assets, and gain leveraged exposure to assets. The team believes decentralized financial systems are advancing. It is now starting to support traditional finance use cases with improved access and transparency. Kamino, which holds almost $3 billion in locked assets, is in a strong place to lead this change. The new feature is not available in the U.S., U.K., and some other regions. Nevertheless, it shows how traditional finance and decentralized systems are starting to come together. Tokenized Stocks Gain Momentum Across Crypto Platforms Tokenized stocks are digital versions of company shares on the blockchain. These tokens are usually backed one-to-one by real shares held by trusted companies. Notably, xStocks, created by Backed Finance, are among the most widely used tokenized stocks. They are issued on both Solana and BNB Chain, and include tokens like xAAPL (Apple) and xTSLA (Tesla). Centralized exchanges like Bybit and Kraken have already used xStocks for trading. The move by Kamino is part of a growing trend. Several companies have recently introduced or expanded services involving tokenized equity. Kraken now lets some users in the EU trade tokenized stocks on Solana. At the same time, Robinhood is working on a similar feature using Arbitrum, a popular layer-2 network built on Ethereum. Tokenized Stocks Face Rule Challenges Even though interest is growing, there are still questions about the rules for tokenized stocks . Regulators are being careful. Hester Peirce, a U.S. SEC official who supports crypto, said tokenized stocks are still considered regular securities and may need to follow old rules. OpenAI also raised concerns about Robinhood’s stock tokens . In response, Robinhood’s CEO, Vlad Tenev, said the tokens are not real shares but are based on them, like derivatives. These issues show that the rules around tokenized assets are still unclear. Still, new ideas keep coming, showing that interest in this space is strong. The post Kamino Now Accepts Tokenized Stocks as Collateral appeared first on TheCoinrise.com .

Source: The Coin Rise