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

Kraken, a leading cryptocurrency exchange, has launched a new feature called xStocks, enabling users to trade tokenized versions of 60 major U.S. equities and 5 ETFs. This innovation allows traders to gain exposure to significant stocks such as Nvidia, Apple, Tesla, and GameStop, among others. The xStocks tokens are issued by Backed Assets Limited and are deployed on the Solana blockchain as SPL tokens. This development marks a significant step in the integration of traditional financial (TradFi) features into the crypto ecosystem.

The xStocks platform offers 24/5 trading access, providing users with the ability to trade these tokenized securities outside of traditional market hours. However, it is important to note that weekend trading is still in development. Additionally, due to regulatory requirements, the platform is not available to customers from the U.S., Canada, the U.K., the EU, or Australia.

One of the notable limitations of the xStocks platform is that the tokens do not confer important shareholder rights. Traders cannot vote in shareholder meetings, and more significantly, they do not have access to dividends. This makes xStocks more suitable for high-growth stocks that typically do not pay dividends, such as Tesla and Nvidia. Most of the stocks available on the xStocks platform fall into this category.

The launch of xStocks by Kraken is part of a broader trend in the financial industry where real-world assets (RWAs) are being tokenized and put on the blockchain. This trend includes a variety of assets such as stocks, real estate, and debt. The total value of RWAs hit $50 billion by March of 2025, and experts project this asset class to reach $2 trillion by 2030. This shift towards tokenization is driven by the potential benefits it offers, including increased liquidity, 24/7 trading, and the ability to fractionalize assets.

Despite the limitations, the introduction of xStocks by Kraken represents a significant development in the crypto industry. It demonstrates the growing integration of TradFi features into the crypto ecosystem and highlights the potential for tokenized securities to unlock new opportunities for traders. As the technology and regulatory environment continue to evolve, it is likely that we will see more innovations in this space, further blurring the lines between traditional finance and the world of cryptocurrencies.

Kraken's xStocks feature allows for 24/5 trading of tokenized US stocks, excluding American users due to regulatory issues. This move highlights Kraken's efforts to integrate traditional and crypto markets, offering 60 tokenized stocks, potentially increasing Solana blockchain activity. The introduction of xStocks marks a major milestone, enabling investors to trade tokenized assets more flexibly. By offering 24-hour trading from Monday to Friday, it breaks conventional market limitation barriers. Such changes may also impact Solana's market demand, the chosen blockchain for these tokenized stocks, increasing its application as users engage with new financial possibilities.

Market reactions are cautiously optimistic, seeing this launch as a breakthrough in financial accessibility. Although leading figures such as Kraken CEO David Ripley have not publicly commented, the chain's prominent choice of excluding US residents suggests a significant emphasis on compliance. Analysts foresee broader discussions around xStocks as the service progresses.