Kraken Launches xStocks Bringing 60 U.S. Stocks to Solana Blockchain

Kraken has made a significant move in integrating traditional finance with blockchain technology by launching xStocks, a new product that brings tokenized U.S. stocks to the Solana blockchain. This development allows foreign investors to gain exposure to American stocks in an innovative way. The news was announced on Kraken's official X account, marking a pivotal moment for the crypto exchange.

Initially, xStocks will offer 60 different U.S. stocks and exchange-traded funds (ETFs). These tokenized assets are minted by Backed, an asset tokenization platform, and represent real-world assets. Through xStocks, international investors can buy, hold, and trade shares of companies and ETFs as SPL tokens on Solana. This flexibility allows the tokenized stocks to be traded around the clock for five days a week, unlike traditional stock markets that operate only during weekdays and are closed at night and on weekends. This feature makes traditional equities more akin to the non-stop nature of crypto markets.

One of the standout advantages of xStocks is self-custody. Token holders can withdraw their tokenized shares directly to their wallets. Once stored on-chain, these tokens become usable in decentralized finance (DeFi) solutions, allowing holders to use them as collateral for loans or other financial instruments. This added utility sets tokenized shares apart from traditional stock holdings, which lack such versatility in mainstream finance.

Arjun Sethi, co-CEO of Kraken, emphasized that xStocks is more than just a new feature. It represents a model for recreating access to wealth and markets. Over the years, borders and stringent financial systems have limited access to major stock markets. xStocks aims to eliminate these barriers, allowing individuals to treat stocks as a currency for storing, transferring, spending, or borrowing against them.

Adam Levi, co-founder of Backed, also highlighted the potential of tokenized equities. He believes that this hybrid of popular stocks with blockchain-enabled trading can transform the financial market into a more open, efficient, and accessible one, benefiting people worldwide. Kraken plans to continuously add new assets to xStocks, which are currently powered by the Solana blockchain. However, there are objectives to port xStocks to other blockchains as well, indicating Kraken's commitment to staying at the forefront of crypto and financial innovation.

This launch signifies a broader shift in global finance. The revolution in capital markets is driven by digital assets and decentralized technology. Kraken aims to empower individuals by placing more control into their hands, creating a free, borderless, and faster investment environment all year round. xStocks has the potential to transform the meaning of investing and accumulating wealth in the connected world over the long term.