Tokenized Equities: Kraken and Trust Wallet's Strategic Move to Reshape Retail Access

The convergence of blockchain technology and traditional finance is accelerating, and Kraken's partnership with Trust Wallet to expand access to tokenized equities marks a pivotal moment in this evolution. By integrating Backed's xStocks into Trust Wallet's 200 million-user ecosystem, the two firms are redefining how retail investors access global markets. This collaboration not only leverages multi-chain infrastructure but also addresses long-standing barriers to financial inclusion, such as high entry costs and geographic restrictions. However, regulatory complexities and market maturity remain critical hurdles to widespread adoption.

Infrastructure Innovation: Bridging Web3 and Traditional Markets

Kraken and Trust Wallet's integration of xStocks represents a technological leap in investment infrastructure. xStocks are fully collateralized, on-chain tokens representing real-world equities, with each token backed 1:1 by the underlying asset : Kraken Partners With Trust Wallet to Expand Tokenized Equities^[1]. This model allows users to trade tokenized equities using local fiat currencies across blockchains like Ethereum, Solana, BNB Chain, and Tron : Trust Wallet Unlocks 60 Tokenized Equities with Kraken and Backed^[2]. The multi-chain approach enhances liquidity and reduces reliance on a single network, mitigating congestion and cost issues that have historically hindered blockchain-based assets.

Trust Wallet's self-custody model further distinguishes this initiative. Unlike traditional brokerage accounts, users retain control of their assets, enabling seamless deposits, withdrawals, and trading across decentralized exchanges (DEXs) and dApps : Kraken Expands xStocks Access Through Partnership With Trust Wallet^[3]. This shift aligns with the broader Web3 ethos of decentralization while maintaining compliance with securities regulations. For instance, Kraken's xStocks are governed by Special Purpose Vehicles (SPVs) with EU ISIN codes, ensuring transparency and alignment with MiFID II standards : xStocks and the New Wave of US Stock Tokenization^[4].

Market Expansion: Demand, Volume, and Regulatory Realities

Since their June 2025 launch, xStocks have generated over $4 billion in trading volume, reflecting robust demand for blockchain-based access to traditional equities : Kraken and Trust Wallet Partner to Expand Tokenized Equities Access^[5]. This figure underscores the appeal of tokenized assets, particularly in regions with limited access to U.S. stock markets. However, regulatory restrictions in the U.S., U.K., Canada, and Australia—jurisdictions accounting for a significant portion of Trust Wallet's user base—temporarily cap scalability : Kraken Extends xStocks to Trust Wallet’s 200 Million Users^[6].

Despite these limitations, the partnership's potential is vast. Trust Wallet's 200 million users now have exposure to 60 tokenized equities, including major U.S. companies like Apple and Tesla : Trust Wallet, Kraken Partner To Offer XStocks Access^[7]. The ability to trade these assets without intermediaries democratizes access, particularly for emerging markets where traditional brokerage infrastructure is underdeveloped. Kraken co-CEO Arjun Sethi described the move as a “paradigm shift toward a borderless financial system,” emphasizing the long-term vision of global market integration : Kraken Partners With Trust Wallet to Drive Adoption of xStocks^[8].

Challenges and the Road Ahead

Regulatory compliance remains a double-edged sword. While xStocks adhere to KYC and investor protection requirements, these measures introduce friction compared to traditional crypto assets. Ross Shem of Stobox noted that tokenized equities operate in a “different cultural framework,” requiring education and trust-building among retail investors : Trust Wallet Unlocks 60 Tokenized Equities with Kraken and Backed^[9]. Additionally, the absence of U.S. participation highlights the fragmented nature of global financial regulation, which could delay broader adoption.

Yet, the market's trajectory is promising. Analysts project the real-world asset (RWA) tokenization market to grow to $2–$30 trillion by 2030 : xStocks and the New Wave of US Stock Tokenization^[10], driven by demand for transparency, efficiency, and cross-border accessibility. Kraken's expansion to the TRON blockchain and plans to support additional regions signal its commitment to scaling this ecosystem : Kraken Expands xStocks to TRON Blockchain With TRC-20 Apple, Tesla Tokens^[11].

Conclusion: A New Era for Retail Investing

Kraken and Trust Wallet's collaboration is more than a technological feat—it's a strategic reimagining of investment infrastructure. By combining blockchain's efficiency with traditional markets' legitimacy, xStocks offer a blueprint for the future of finance. While regulatory and educational challenges persist, the $4 billion trading volume and multi-chain scalability demonstrate the market's readiness for innovation. For investors, this partnership signals an opportunity to participate in a system where borders dissolve, and access is democratized—one tokenized equity at a time.