XStocks, a tokenized equity platform from real asset (RWA) tokenization company Backed and cryptocurrency exchange Kraken, has surpassed $10 billion in total transaction volume just over four months after its launch, signaling a growing appetite for tokenized investment products.

The platform debuted earlier this year with over 60 tokenized stocks, including Nvidia, Amazon, Tesla and Meta Platforms, as well as several ETFs. Each xStock token is fully backed 1:1 by the underlying equity or ETF, issued by Backed in partnership with Kraken.

XStocks operates on the Ethereum, Solana, BNB Chain and Tron networks, expanding availability across major blockchain ecosystems.

In addition to the total trading volume, xStocks reported nearly $2 billion in onchain transaction activity and participation from over 45,000 onchain holders, and total assets under management are $135 million.

The xStocks offer is one of several products with exposure to tokenized shares. Other players include Securitize, which issues tokenized stocks, funds and other RWAs on the blockchain, and Robinhood Markets, which has also begun rolling out exchange tokens in select markets.

Related: Kraken launches tokenized securities trading in Europe with xStocks

Tokenized stocks are growing rapidly despite being in a regulatory gray area

According to John Murillo, chief business officer at fintech firm B2Broker, the rapid growth of tokenized stocks has come even as the sector continues to operate in what some experts call a legal gray zone.

Murillo referred to the fact that tokenized stocks are typically digital representations of exposure to the underlying financial asset, rather than the stock itself.

“It is key to understand that investors do not own the actual shares; they own tokens issued by intermediaries that may entitle them to payouts if the underlying shares increase or are sold,” Cointelegraph said.

Despite regulatory uncertainty, industry data indicates that the total value of tokenized public shares currently held online is approximately $666 million, a figure that does not include cumulative trading volume.

Related: Private companies are lining up to join Robinhood’s tokenized capital platform: CEO