- Kraken to offer tokenized US stocks and ETFs, providing 24/7 access to global investors.
- xStocks will be backed 1:1 by real assets, allowing flexible trading beyond traditional hours.
- Kraken aims to reduce barriers for international investors, boosting global equity access.
Crypto exchange Kraken aims to launch tokenized versions of 50 US stocks and ETFs. This move will allow investors worldwide to trade Apple, Tesla, Nvidia, SPDR S&P 500 ETF (SPY), and other major equities anytime. These tokens fall under the brand name “xStocks” and will be deployed on the Solana blockchain.
Kraken’s goal is to make it easier for non-US investors to purchase US stocks. The platform provides tokenized versions to help global users easily engage in buying and selling US equities. The product will be available to users in Latin America, Europe, Asia, and Africa within the next few weeks.
xStocks: Real Shares, 24/7 Trading
Every xStock will be linked 1:1 with actual shares of the asset it represents. Backed Finance, Kraken’s partner, will be responsible for owning and managing the stocks or ETFs chosen by investors. These assets will then be represented as tokens on the blockchain. Each token will be worth the amount of cash tied to the asset, which helps ensure the price is the same in both places.
Since Kraken’s xStocks are available 24/7, users can trade stocks anytime, even when normal exchanges aren’t operating. As a result, global investors can trade more conveniently than they could before. Kraken seeks to give all investors, including Americans, the ability to invest in equity products through simpler procedures and lower costs.
According to Kraken’s co-CEO, Arjun Sethi, tokenization might become even bigger in the market than stablecoins. During an April interview, Sethi discussed the openness and availability of tokenized shares. These features may help solve the trade problems that international investors encounter with US stocks.
Related: CEX Kraken Eyes $1B Debt Raise Before Potential IPO
Tokenized Equities Breaking Barriers
Tokenized equities have been in the spotlight due to controversy in the past. In 2021, Binance provided tokenized stocks of Tesla and other companies. As a result of regulator involvement, Binance terminated them later that year. Despite these obstacles, tokenization for traditional assets is set to grow. In March 2024, BlackRock set up its digital liquidity fund, leading the way in gaining a significant share of the tokenized Treasury market.
Kraken’s effort to offer tokenized US equities is a big move toward opening up global markets to investors. This move comes after growing interest in asset tokenization, with major firms like Citi and HSBC recently launching blockchain-based tokenization projects in Hong Kong.
