TL;DR
- Kraken will allow non-U.S. users to trade Apple, Tesla, Nvidia and other popular company shares in the form of digital tokens, available 24/7.
- These instruments, known as “xStocks,” will be backed by real securities and run on the Solana blockchain.
- The initiative aims to reduce costs and barriers for international investors seeking access to the U.S. stock market, particularly in Europe, Asia, and Latin America.
Kraken, one of the world’s most respected cryptocurrency exchanges, has announced a bold step toward merging traditional finance with the crypto ecosystem: the launch of tokenized stocks available for 24/7 trading. This offering, initially aimed at users outside the United States, includes more than 50 stocks and exchange-traded funds (ETFs), including giants like Apple, Tesla, and Nvidia, along with financial products such as the SPDR S&P 500 ETF and SPDR Gold Shares.
All trading will take place via the Solana blockchain, a network renowned for its speed, low transaction costs, and growing popularity among DeFi developers and users worldwide.
The new tokens, branded as “xStocks”, will be backed by real-world assets through a partnership with “Backed Finance”, a company responsible for holding the equivalent underlying shares. This model ensures each token mirrors the actual market value of its traditional counterpart, offering investors transparency and trust.
Additionally, the tokens will be redeemable for the cash value of the underlying asset, delivering immediate liquidity that is often lacking in traditional stock markets. Investors may even use them as collateral in decentralized finance strategies, creating new opportunities within the evolving digital economy and crypto ecosystem globally and sustainably.
Blockchain Innovation and Borderless Global Access
This initiative positions Kraken as a true pioneer in applying tokenization to the stock market with a global perspective. According to co-CEO Arjun Sethi, international investors currently face high fees and sluggish processes when accessing U.S. equities.
Kraken’s blockchain-based approach aims to eliminate these frictions and open up stock market access to millions across Latin America, Europe, Asia, and Africa, revolutionizing how global investors engage with global markets.
Unlike previous attempts—such as Binance’s failed tokenized stocks project in 2021—Kraken is taking a more regulated and collaborative approach, actively working with financial authorities in each jurisdiction to ensure full compliance. At a time when giants like BlackRock and Robinhood are also exploring tokenization, Kraken stands out by delivering a tangible, functional solution built for the future of finance. The convergence of cryptocurrencies and traditional stocks is no longer just a promise, it’s a reality in the making.
