1 00:00:14,230 --> 00:00:20,384 [HOST] Welcome to X1 Report, your source for blockchain news and analysis. Today's story is about 2 00:00:20,384 --> 00:00:26,264 tokenized stocks on the X1 blockchain, where the same stock can cost 3.4% more or less 3 00:00:26,264 --> 00:00:29,068 depending on which chain you trade it on. 4 00:00:29,318 --> 00:00:35,220 [ANALYST] Tokenized stocks are tokens that represent real-world shares, issued by Backed Finance and 5 00:00:35,220 --> 00:00:40,925 bridged between Solana and X1 using the Warp bridge. The price difference between these 6 00:00:40,925 --> 00:00:46,630 two chains is significant, with some stocks trading 3.4% higher on X1 compared to their 7 00:00:46,630 --> 00:00:47,942 Solana counterparts. 8 00:00:48,192 --> 00:00:53,770 [HOST] This price gap raises questions about why it exists and whether anyone can profit from it. 9 00:00:53,770 --> 00:00:55,506 Let's dive into the details. 10 00:00:55,756 --> 00:01:01,117 [ANALYST] The price difference is due to the cost of trading on each chain. X1 uses the Solana 11 00:01:01,117 --> 00:01:06,862 Virtual Machine, which allows for faster and cheaper transactions compared to Solana. This 12 00:01:06,862 --> 00:01:11,457 makes X1 more attractive for automated market makers and arbitrage bots. 13 00:01:11,707 --> 00:01:17,480 [HOST] But what exactly are tokenized stocks? They're tokens that mirror real-world shares, held 14 00:01:17,480 --> 00:01:23,253 by a custodian and available on both Solana and X1. The SEC recently granted an exemption 15 00:01:23,253 --> 00:01:27,729 allowing these tokenized stocks to trade in on-chain liquidity pools. 16 00:01:27,979 --> 00:01:32,983 [ANALYST] The price gap is not just about cost; it's also about the liquidity and depth of the 17 00:01:32,983 --> 00:01:38,166 markets. Currently, most of the X1 pools are small, meaning the gaps can't be traded in 18 00:01:38,166 --> 00:01:39,179 significant size. 19 00:01:39,429 --> 00:01:45,213 [HOST] So, who can actually earn from this price gap? Arbitrage bots and liquidity providers are 20 00:01:45,213 --> 00:01:50,737 key players. They move the market towards the real price, making the gap smaller over 21 00:01:50,737 --> 00:01:51,062 time. 22 00:01:51,312 --> 00:01:56,642 [ANALYST] Let's look at some specific examples. For instance, buying Alphabet (GOOGL) on Solana and 23 00:01:56,642 --> 00:02:01,971 selling it on X1 can be profitable, but only if the gap is wide enough to cover the costs 24 00:02:01,971 --> 00:02:03,408 of bridging and trading. 25 00:02:03,658 --> 00:02:09,457 [HOST] The SEC has issued an order allowing tokenized securities venues to trade through AMMs 26 00:02:09,457 --> 00:02:15,323 without registering as stock exchanges. This opens up new possibilities for blockchain- 27 00:02:15,323 --> 00:02:16,267 based trading. 28 00:02:16,517 --> 00:02:21,745 [ANALYST] However, the order does not directly apply to X1 stocks due to differences in how 29 00:02:21,745 --> 00:02:27,297 liquidity is managed and the nature of the tokens. The SEC's decision is a significant 30 00:02:27,297 --> 00:02:31,429 step towards legitimizing on-chain trading of real-world assets. 31 00:02:31,679 --> 00:02:37,406 [HOST] So, what should we watch for? As the market depth increases, the gaps will start closing 32 00:02:37,406 --> 00:02:43,264 naturally. Additionally, the U.S. open times are crucial, as that's when the largest price 33 00:02:43,264 --> 00:02:44,566 discrepancies occur. 34 00:02:44,816 --> 00:02:50,195 [ANALYST] The future of tokenized stocks on X1 looks promising, with the potential for increased 35 00:02:50,195 --> 00:02:55,699 liquidity and more sophisticated trading strategies. But for now, the market is still in 36 00:02:55,699 --> 00:02:56,762 its early stages. 37 00:02:57,012 --> 00:03:02,712 [HOST] That's all for today's report. Stay tuned for more insights into the blockchain ecosystem. 38 00:03:02,712 --> 00:03:05,372 Until next time, keep your crypto curious.