Kraken Launches xStocks for 24/5 Trading of 60 US Stocks

Kraken, a leading cryptocurrency exchange, has introduced xStocks, a new feature that enables the trading of tokenized versions of 60 US stocks. Announced on June 30, this initiative allows for 24/5 trading of these tokenized stocks, offering investors a unique way to access traditional US equities through blockchain technology. The tokenized stocks include prominent companies such as Apple, Tesla, and Nvidia.

xStocks are digital representations of real stocks and ETFs, with each token backed one-to-one by the underlying stock. Issued as SPL tokens on the Solana blockchain, these tokenized stocks do not offer voting rights but automatically reinvest dividends into more tokens. This structure provides price exposure without the full benefits of shareholder rights. The 24/5 market access and the ability to withdraw xStocks to crypto wallets for 24/7 on-chain trading make investing more flexible. The minimum investment starts at just one US dollar, making fractional ownership accessible to smaller investors. There are no trading fees when buying with USD or USDG.

Kraken collaborated with Backed and the Solana Foundation to launch xStocks. Backed issues these tokenized US equities on the Solana blockchain, chosen for its fast and low-cost transaction capabilities. The partnership aims to enhance global access to US equities, targeting non-US retail clients in selected countries. This initiative complies with financial regulations in various regions, ensuring a careful rollout that respects geo-restrictions. xStocks are not available in the US, Canada, UK, EU, or Australia, but Kraken provides a list of eligible countries.

Kraken already offers over 11,000 US-listed stocks and ETFs to US clients. The addition of tokenized stocks combines crypto infrastructure with traditional financial products, creating new opportunities for global investing in US equities. This hybrid approach signals the growing integration of finance and blockchain technology. The project reflects broader trends of decentralizing traditional finance systems, paving the way for global, 24/7 financial markets.

Looking ahead, Kraken and Backed plan to expand the tokenized stocks project to other blockchains. This expansion aims to increase market access and accelerate innovation worldwide, enabling new investment possibilities at any time. The partnership is a significant step toward a more decentralized and accessible financial ecosystem, where traditional equities can be traded seamlessly on blockchain platforms.