Kraken to launch tokenized U.S. stocks for global clients
Kraken to offer over 50 tokenized stocks and ETFs to non-U.S.clients
Crypto exchange Kraken is joining major industry players like BlackRock, Franklin Templeton, JPMorgan, and Robinhood in exploring ways to digitize traditional financial assets.
According to reports, Kraken plans to launch a new offering called xStocks, which will allow non-U.S. citizens to trade tokenized shares of over 50 U.S. companies — including Apple, Tesla, and Nvidia — on the Solana blockchain. The xStocks offering will also include access to ETFs such as the SPDR S&P 500 and SPDR Gold Shares.
The service is expected to launch in the coming weeks, enabling clients in regions such as Europe, Latin America, Africa, and Asia to trade these tokenized assets 24/7, even when traditional markets are closed.
The tokens will be backed by the underlying securities held by Kraken’s partner, Backed Finance. Clients will be able to redeem them for the cash value of the underlying stock or ETF. Kraken believes this model can significantly reduce costs and complexity for international investors seeking access to U.S. equities.
“There are a lot of frictions, but tokenization can streamline overseas investing,” said Kraken Co-CEO Arjun Seti.
A new wave of stock trading
Kraken hopes that xStocks will eventually be tradable on other crypto exchanges, transferable to personal digital wallets, and usable as collateral for lending or crypto-based trading strategies.
In contrast, when Binance launched a similar tokenized stock product in 2021, including Tesla shares, the initiative was quickly shut down due to regulatory pressure.
Kraken appears to be taking a more cautious route. A company representative said Kraken is “actively engaging with various regulators” to ensure that xStocks are offered legally in each jurisdiction.
