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Backed’s Tokenized Coinbase Stock and S&P 500 Launches on Avalanche

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Backed’s tokenized Coinbase Stock (bCOIN) and S&P 500 token (bCSPX), licensed by S&P Global, are officially live on the Avalanche C-Chain network and are available via DEX pool.

Advancing the mission to bridge traditional finance with the world of DeFi, this milestone provides users with unprecedented access to one of the world’s most recognized and sought-after market indices, and one of the biggest public companies operating in the crypto sector.

This launch empowers eligible DeFi participants with on-chain exposure to the S&P 500, the premier benchmark for the U.S. stock market, and onchain exposure to one of the world’s biggest publicly traded crypto companies, Coinbase. Both tokens offer the opportunity to engage with global industry leaders such as Apple, Microsoft, and Amazon, all within the blockchain ecosystem, showcasing the power and composability of tokenized securities.

What does this mean for DeFi users?

The availability of bCSPX and bCOIN on Avalanche unlocks a range of possibilities for DeFi enthusiasts:

  • Exposure to the S&P 500: bCSPX tracks the performance of the S&P 500 index, providing users with a tokenized representation of this diversified portfolio of U.S. equities, eliminating the need for traditional brokerage accounts, and opening up access to a wider audience.

  • Exposure to COIN: Get onchain exposure to one of the biggest publicly traded crypto companies, Coinbase.

  • Enhanced Yield Opportunities: Beyond simply holding bCSPX and bCOIN, users can now provide liquidity on PharaohExchange and earn additional yield through Avalanche’s incentive program. This means potential returns beyond the underlying S&P 500 or COIN performance, maximizing capital efficiency.

  • Cross-Chain Functionality: Thanks to Chainlink CCIP, bCSPX and bCOIN can be easily bridged and swapped between Avalanche, Base and Gnosis Chain. This interoperability allows users to take advantage of arbitrage opportunities and access the deepest liquidity pools, regardless of the network they prefer.

    For example, if the price of bCSPX is slightly different on another chain, a user can buy on one and sell on another, profiting from the price difference. This cross-chain functionality can be facilitated by Backed’s bridge powered by Chainlink CCIP or aggregators like Bungee, Jumper, and Swaps.io, simplifying the process for users.

  • Enhanced Liquidity: The bCSPX and bCOIN pools on PharaohExchange further enhance the token’s liquidity, making it easier for users to buy and sell without significant price slippage. This robust liquidity is crucial for a healthy and efficient market.

Real-World Use:

Tokenizing the S&P 500 with bCSPX and Coinbase Stock with bCOIN unlocks diverse DeFi applications. Users can easily diversify portfolios with U.S. stock market exposure, use their bTokens as collateral in lending protocols to access capital without selling their assets, and leverage it to create synthetic assets, expanding the DeFi ecosystem’s potential further.

A Step Towards Mainstream Adoption:

The launch of bCSPX and bCOIN on Avalanche represents a systemic step towards the mainstream adoption of tokenized securities. By bridging the gap between traditional finance and DeFi, Backed is creating a more accessible, efficient, and transparent financial ecosystem.