AI translated#Podcast

xStocks in Wallet: an alternative to cryptocurrencies

Wallet CTO Alexander Tobol on xStocks, DeFi and diversification.

27.10.2025 ForkLog

The multibillion-dollar liquidations on 11 October reminded the crypto community of the need to diversify risk. In a conversation with ForkLog, Wallet CTO Alexander Tobol spoke about the launch of tokenised equities xStocks and why this instrument could prove a more resilient alternative for investors.

ForkLog (FL): In the summer of 2025, Wallet entered the US market. How did the launch go?

Alexander Tobol (A.T.): We entered the US with a non-custodial wallet and the entire TON ecosystem. Globally, Telegram now has about 87m users in the US. That is roughly 25% of the population.

Now they can use DeFi tools, carry out on-/off-ramp operations and transfer cryptocurrencies to each other without leaving Telegram.

It is a major and important launch, and the market reacted positively to it in terms of the cryptocurrency’s price.

FL: In early October you integrated xStocks—trading in tokenised equities. What is it and how is it implemented technically?

A.T.: xStocks appeared in the custodial version of the wallet, in which we manage your assets. Dozens of shares and ETF funds are already available.

Backed Finance issues the tokens. Kraken, as a liquidity provider, buys them. And then we, as the largest retail service, provide the ability to buy and redeem shares.

The process is audited externally so that the number of tokens on the network always corresponds to the number of shares held in brokerage accounts for this company. The mechanism is built in such a way that dividends are paid not in cash but by purchasing additional xStocks.

To start trading, a KYC procedure is mandatory, but by the end of the year it will appear on-chain for all non-custodial wallets that do not require verification.

FL: Is xStocks a security?

A.T.: It is not. With xStocks you do not have voting rights, it is not transferable. It is a derivative issued on an asset held in a depository, with a guarantee that you can receive it, redeem it, exchange it, and so on.

FL: What are the main advantages for users?

A.T.: Exchanges that trade classic stocks do not open at the most convenient time. xStocks in Wallet can be traded 24/5, and soon 24/7.

FL: On which blockchains are these tokens issued?

A.T.: They are now issued on Ethereum and Solana, and by the end of the year they will be available on TON.

We are already preparing infrastructure so that users can additionally earn on these shares.

FL: Is xStocks offered as an alternative to cryptocurrencies?

A.T.: Classic investor portfolios typically consist of 5–10% gold, 40% stocks, 20% bonds and up to 30% cryptocurrencies.

Cryptocurrencies are more volatile; sometimes you want to hedge and have a mechanism for a quick transition into classic finance. We provide a solution for investing across the full spectrum of assets to build a portfolio tailored to an individual risk profile.

FL: If, for some reason, Backed or Kraken were to go under, what would happen to the tokens or people’s money?

A.T.: The same as if Binance were to go under. Kraken is one of the largest exchanges, so its collapse would be a serious risk for the crypto market. But in terms of user protection, stock depositories are controlled; there is continuous audit. Even if something happens to the token, if the user presents a claim right to it, he will be able to return that share directly from the depository.

FL: Does Wallet earn anything on this?

A.T.: Our strategy is to provide people with opportunities for investment and earnings. In the future we do not rule out the appearance of tools and loyalty programmes under which users will bring money to us as well.

FL: Is Wallet integrated into Telegram’s code or does it act as a separate app? Who manages its infrastructure?

A.T.: The wallet is built on the open mini-app solution in Telegram. At the same time, Wallet is a completely separate structure. We are part of The Open Platform, which in the summer raised investment at a $1bn valuation.

Wallet is served by its own team of developers and SRE engineers. And we operate entirely independently. We are free to choose our data centres, infrastructure and structure, and are a fully independent business.

FL: There are complaints on social networks about funds being blocked in the wallet. As you have said, there are custodial and non-custodial versions. Where can Wallet block funds, and where can it not?

A.T.: In the non-custodial solution, where the user holds the private key and fully manages his money, we do not have any information about him and cannot in any way impede his activity. At the same time, the user always has the option to take his seed phrase and move it to another wallet. This is pure DeFi without restrictions.

In the custodial solution we do indeed manage the user’s money. All private keys are stored with us. And in this case we work with the regulator and perform basic AML procedures. For example, when transferring funds from a betting service, we will be forced to request documents from the user to verify the legality of the winnings in his jurisdiction and then approve his withdrawal.

FL: How many users does Wallet have now, and what is the growth dynamic?

A.T.: We now have around 140m registered users and, given Telegram’s global expansion, further growth is not constrained by anything.

We believe that providing simple, intuitive tools, financial freedom and investment opportunities worldwide will grow our audience.

FL: Is there a limit to the number of wallet users the system can handle without lag?

A.T.: One way or another, loads rise on different services. TON has now rebuilt the infrastructure so that each service has become independent and automatically scales in the cloud. We now have no constraints other than hardware in data centres. Therefore, we prepare in advance for peak loads to procure more hardware and scale out.

FL: What are Wallet users most interested in right now?

A.T.: The main interests are earn services, trading and sending USDT tokens. But overall all services are in demand and growing actively.

FL: In the interview with Lex Fridman, Pavel Durov said that Telegram is built so that it is physically impossible to hack privacy. What technical solutions in Wallet inherit this philosophy of Telegram?

A.T.: Wallet is a financial product, and the messenger’s philosophy cannot always carry over to us. However, in the non-custodial solution users are fully protected by algorithms—only owners of the private key can manage funds in the wallet.

FL: In some countries Wallet is still unavailable. Why is that, if Telegram is a global messenger?

A.T.: Telegram is a global messenger, but in terms of cryptocurrencies there are certain regulatory requirements, and the wallet is regulated in all open jurisdictions.

Of course, in some places we are constrained by regulation, but we are obtaining more licences with the aim of a legal and full entry into previously closed markets. In the longer term we must catch up with the entire market for regulated cryptocurrencies.

FL: What will happen to Wallet in a couple of years? Will it move purely to a DeFi instrument or turn into a kind of centralised super-bank based on Telegram?

A.T.: We have two solutions for this: custodial, which is somewhat analogous to banks in the world of cryptocurrencies, and non-custodial. Globally, our common goal is financial freedom—the ability to open up access to investment and financial markets to all Telegram users.

FL: Do you plan to add AI solutions to Wallet?

A.T.: The field of cryptocurrencies in combination with artificial intelligence is developing very actively now. We are looking in this direction and seeking opportunities that will allow crypto investors to interact with AI more natively and conveniently within the Telegram ecosystem.

FL: Many are now discussing the experiment in which six top neural networks trade cryptocurrencies with real money, starting with $10,000.

A.T.: A lot here depends on risk assessment and prompts, which can be interpreted in completely different ways. I would not recommend investing with AI bots without risk analysis.

After 11 October, cryptocurrency as a whole is reviving. But if you want to protect your finances and move from cryptocurrency—bitcoin, ether, TON or other coins—into classic finance, gold and xStocks are always available to you.