Superstate and Backpack Partnership Announcement
In an innovative move within the blockchain sphere, Superstate, a startup focused on integrating traditional finance with cryptocurrency technology, has announced a partnership with Backpack, a platform for crypto wallets and exchanges. This collaboration aims to enable the trading of real U.S. equities on the blockchain, marking a significant milestone for both companies.
Integration of Opening Bell Platform
Superstate will integrate its Opening Bell platform with Backpack, thus making it the first centralized exchange to list bona fide stocks that are registered with the Securities and Exchange Commission (SEC). Through this integration, non-U.S. investors will gain the ability to trade tokenized representations of publicly traded companies in the U.S. directly within their Solana wallet.
“As the first centralized crypto exchange to facilitate genuine on-chain equities, Backpack will allow qualified non-U.S. investors to trade authentic, SEC-registered shares (not merely wrappers) alongside various cryptocurrencies and stablecoins.”
Comparison with Existing Crypto Exchanges
Currently, certain crypto exchanges like Kraken do provide tokenized stock options through mechanisms like xStocks, which essentially serve as custodial wrappers. However, these wrappers do not confer direct shareholder rights, limiting the holder’s benefits compared to traditional equities. In contrast, Superstate’s initiative promises actual ownership of shares that will be represented natively on the blockchain, ensuring that investors receive all traditional rights, including dividend payments and voting privileges.
Access to Publicly-Traded Stocks
With this development, users will have access to the same publicly-traded stocks available on well-known platforms like Nasdaq and the New York Stock Exchange, and they will be able to trade these assets 24/7, thanks to the nature of crypto exchanges.
Future Prospects
The launch of this trading capability is anticipated to unveil an initial roster of eligible stocks soon, although Superstate has already made headlines by collaborating with Galaxy Digital to introduce its GLXY stock onto the Solana blockchain. Similar to the forthcoming offerings on Backpack, Galaxy Digital will provide its shares without relying on derivatives or synthetic instruments, guaranteeing investors the rights and benefits associated with conventional stocks.
Conclusion
This partnership between Superstate and Backpack is a noteworthy advancement towards bridging traditional finance with the rapidly evolving world of cryptocurrency, potentially opening up new horizons for investors globally.
