Kraken Launches Tokenized U.S. Stocks on Solana Blockchain

Kraken, a leading cryptocurrency exchange, has begun a phased rollout of tokenized U.S. stocks and exchange-traded funds (ETFs), marking a notable advancement in the financial sector. This initiative allows investors to trade digital tokens representing major U.S. equities, such as Apple, Tesla, and Nvidia, on a 24/5 basis. However, these tokenized stocks are not available to U.S. residents due to regulatory constraints.

Arjun Sethi, Kraken co-CEO, emphasized the transformative potential of this move, stating, “For the first time, people all over the world can own and use a share of a tokenized stock like they would use money. You can move it, hold it, spend it or borrow against it. All from your wallet, with no intermediaries, no borders and no delays.” This shift aims to democratize access to financial markets, empowering individuals globally to participate in wealth creation without the traditional barriers of accreditation or privilege.

Adam Levi, co-founder at Backed, highlighted the significance of tokenized equities in the evolution of the crypto space. He noted, “Tokenized equities are the next step for crypto as the space matures from niche digital assets into a market that serves a global audience. This opportunity comes from the tokenization of in-demand equities meeting the influx of previously excluded users, eventually culminating in a market that’s both more efficient, composable and accessible than traditional finance.”

Kraken’s initial launch of xStocks is based on the Solana blockchain, with plans to expand to other high-performance blockchains in the coming weeks. This move is seen as a fundamental shift in how investors engage with traditional markets, offering a permissionless, self-custodial, and globally accessible investment experience. The future of investing, as envisioned by Kraken, is one that is free from costly intermediaries and open around the clock.

Backed Finance, a company specializing in tokenized financial products, has also launched tokenized U.S. equities on multiple platforms, including Bybit, Kraken, and Solana DeFi. This collaboration with major exchanges and DeFi platforms underscores the growing acceptance and integration of tokenized assets within the financial ecosystem. The xStocks Alliance, which includes Chainlink, Raydium, Jupiter, and Kamino, further supports this initiative by providing the necessary infrastructure and liquidity for tokenized stock trading.

Gemini, another leading cryptocurrency exchange, has also entered the tokenized equities market by offering a tokenized version of Michael Saylor’s Strategy (MSTR) stock to European Union investors. This move is seen as a solution to the limitations of traditional equity markets, providing investors with 24/7 trading, lower fees, and greater liquidity. Gemini's onchain trading system allows users to hold both crypto and equities seamlessly, enhancing the overall trading experience.

The launch of tokenized equities by Kraken and other exchanges represents a significant step towards bridging the gap between traditional finance and the crypto world. By offering tokenized stocks, these platforms are providing investors with new opportunities to gain exposure to major equities while benefiting from the advantages of blockchain technology. This development is expected to attract a wider range of investors, including those who are new to the crypto space, and contribute to the growth and adoption of tokenized financial products.