Kraken Backed Launch xStocks on BNB Chain for 24/7 US Stock Trading

Kraken and Backed have launched xStocks on the BNB Chain, a groundbreaking initiative that brings tokenized US stocks to the decentralized finance (DeFi) ecosystem. This collaboration introduces US stocks as BEP20 tokens, enabling global crypto users to access U.S. equity markets in a more flexible and transparent manner.

By leveraging the BNB Chain's speed and low fees, Kraken and Backed aim to make traditional assets more accessible and tradable around the clock. Users can now buy, hold, and trade tokenized versions of popular U.S. stocks such as Apple, Tesla, and Microsoft, just like any other crypto asset. Each xStock is backed 1:1 by the actual U.S. stock it represents and is issued as a BEP20 token, providing users with the flexibility to trade 24/7.

Backed handles the custody and regulatory aspects, ensuring that each token corresponds directly to a real stock held in trust. Kraken provides a trusted platform for trading and liquidity, resulting in a seamless experience where users gain exposure to U.S. equities without dealing with legacy systems or intermediaries.

This move by Kraken and Backed blurs the lines between traditional and decentralized finance. Tokenized US stocks lower the barrier for retail investors globally, especially in regions where direct access to the U.S. stock market is limited. Integrating tokenized equities with DeFi platforms unlocks potential use cases like lending, borrowing, or staking using stocks as collateral—an idea that would be unthinkable in traditional finance.

With xStocks on BNB Chain, the path to financial inclusivity and innovation becomes clearer. The partnership between Kraken, Backed, and BNB Chain represents a significant step towards expanding how people interact with financial markets using on-chain technology. In the coming weeks, eligible Kraken users in supported jurisdictions will be able to deposit and withdraw these tokenized equity assets through BNB Chain. The xStocks will be tradable on PancakeSwap, a decentralized exchange, and can be plugged into various DeFi products to maximize their utility. This integration allows users to trade, earn, or borrow tokenized stocks just like any other on-chain token, without the constraints of traditional market hours or gatekeepers.

The choice of BNB Chain for this initiative is strategic. BNB Chain offers low gas fees, high throughput, and fast finality, making it an ideal platform for tokenized assets. Adding equities to this ecosystem is seen as the next evolution in decentralized finance. Kraken Co-CEO Arjun Sethi highlighted the transformative potential of tokenized equities, stating that they are not just digital wrappers for traditional assets but a foundational upgrade to the financial system. Backed co-founder Adam Levi echoed this sentiment, emphasizing that tokenized equities integrated into DeFi will surpass the scale and utility of stablecoins. Sarah S, Head of Business Development at BNB Chain, noted that tokenizing real-world assets on BNB Chain is a meaningful step in making global finance more accessible and transparent.

The rollout of xStocks on BNB Chain is imminent, and it promises to open new markets for traders and investors. For those building in DeFi, the tools and opportunities are expanding rapidly. For traders, this means access to new markets and the ability to trade tokenized equities 24/7. For observers, this development signals a significant shift in how financial markets operate, blending traditional finance with decentralized finance in a seamless and efficient manner.