Ethereum News Today: Kraken Unlocks Ethereum for Tokenized Stocks, Boosting DeFi Access

Kraken, in collaboration with Swiss tokenization firm Backed, has expanded its tokenized equities offering to the Ethereum blockchain, marking a significant step in the integration of traditional financial assets with decentralized infrastructure. This initiative, known as xStocks, enables eligible Kraken clients to deposit and withdraw tokenized stocks and ETFs directly on Ethereum, where they will exist as ERC-20 tokens fully collateralized 1:1 by underlying equities. The move allows investors to transfer assets between Kraken and self-custodial wallets and access Ethereum-based decentralized finance (DeFi) protocols, enhancing the interoperability and programmability of tokenized equities.

This rollout builds on previous xStocks deployments on chains such as Solana, BNB Chain, and TRON, which have collectively generated over $3.5 billion in trading volume since their launch in June 2025. Kraken co-CEO Arjun Sethi emphasized that the multi-chain approach ensures tokenized equities are portable across ecosystems and composable within trusted applications, with Ethereum being a natural next step due to its large smart contract network and innovation in decentralized finance. The Ethereum expansion is expected to provide immediate access to thousands of decentralized applications, enhancing liquidity and functionality for tokenized equities.

The initiative reflects a broader industry trend of tokenizing real-world assets and integrating traditional financial instruments onto blockchain platforms. Kraken’s move aligns with similar efforts by other crypto platforms such as Gemini and Robinhood, which have also introduced tokenized U.S. stocks for EU users. However, the tokenized equity market faces challenges, including regulatory uncertainty and the limited rights associated with tokenized shares compared to traditional stocks. Despite these concerns, the expansion of xStocks to Ethereum signals growing acceptance of tokenized assets as a viable component of both centralized and decentralized financial ecosystems.

Ethereum’s role in this development is further underscored by its position as the dominant smart contract platform, offering deep liquidity, a vibrant developer community, and a global user base. The platform’s ability to support high-value DeFi activity and institutional-grade transactions positions it as a key infrastructure layer for tokenized assets. Kraken’s integration of xStocks into Ethereum is expected to enable developers and institutions to build new applications leveraging tokenized equities, expanding their use cases beyond simple trading and investment.

As tokenization continues to evolve, it remains to be seen how regulatory frameworks will adapt to support the growing market for blockchain-based assets. While Kraken’s expansion into Ethereum demonstrates technological and market readiness, the long-term success of tokenized equities will depend on the development of standardized practices, legal clarity, and broader adoption across both traditional and digital finance sectors.

Source: [1] Kraken Brings Tokenized Equities to Ethereum Blockchain (https://www.pymnts.com/cryptocurrency/2025/kraken-brings-tokenized-equities-ethereum-blockchain/) [2] Kraken, Backed Bring Tokenized Equities Offering to ... (https://www.coindesk.com/business/2025/09/02/kraken-backed-bring-tokenized-equities-offering-to-ethereum-mainnet) [3] BNB Chain Surpasses Ethereum in Adoption and ... (https://thecurrencyanalytics.com/altcoins/bnb-chains-overtaking-of-ethereum-a-fundamental-shift-in-blockchain-adoption-and-investment-194234)