Kraken Launches xStocks Platform Offering 60 Tokenized U.S. Stocks

Kraken, a prominent cryptocurrency exchange, has introduced xStocks, a platform that offers over 60 tokenized U.S. stocks and ETFs, including major companies such as Nvidia, Apple, and Tesla. This move marks a significant step in the integration of traditional financial (TradFi) features into the crypto ecosystem.

With xStocks, users can trade tokenized versions of 55 U.S. stocks and 5 ETFs, which are backed 1:1 with real stocks and issued on the blockchain as SPL tokens. This innovation allows traders to gain exposure to major stocks and ETFs in a decentralized manner, with the added benefit of being able to withdraw their xStocks tokens to their wallets, making them self-custodial.

However, the platform has several limitations due to both technical and regulatory reasons. Currently, trading is available during the workday, even after the market closes, but weekend trading is still in development. Additionally, the platform is not available in certain locations, including the U.S., Canada, the U.K., the EU, or Australia, due to regulatory requirements.

One of the most significant limitations of xStocks is that the tokens do not confer important shareholder rights. Traders cannot vote in shareholder meetings, and more importantly, they do not have access to dividends, which are a crucial part of returns for some stocks. This makes xStocks more suitable for high-growth stocks like Tesla and Nvidia, which typically do not pay dividends as they reinvest profits back into operations.

Tokenized stocks are part of a growing trend of putting real-world assets on the blockchain. This trend includes a variety of assets such as stocks, real estate, debt, and more. The total value of these real-world assets (RWAs) on the blockchain hit $50 billion by March of 2025, and experts project this asset class to hit $2 trillion by 2030.

This development by Kraken highlights the increasing convergence of traditional finance and the crypto world, offering new opportunities for traders to access and trade traditional financial instruments in a decentralized and innovative manner.