Kraken Launches xStocks Tokenized U.S. Stocks for Global Clients

Kraken, a leading cryptocurrency exchange, has unveiled plans to offer tokenized versions of U.S. stocks to its non-U.S. clients. This initiative, known as xStocks, will enable users in selected regions to trade popular U.S.-listed stocks and exchange-traded funds (ETFs) around the clock, similar to the trading of cryptocurrencies like bitcoin. The tokenized stocks will be available to customers in Europe, Latin America, Africa, and Asia, with future plans to expand the service to additional regions.

The xStocks product is developed in collaboration with Backed and will tokenize popular U.S.-listed assets as SPL tokens on the Solana blockchain. This structure allows the tokenized assets to be utilized on-chain, such as for collateral in decentralized applications, a feature not supported by traditional brokerage systems. Kraken's Global Head of Consumer Mark, Greenberg, emphasized that xStocks aims to provide faster, cheaper, and more inclusive access to U.S. equities, criticizing the current systems as slow, expensive, and geographically limited. Greenberg stated, “[xStocks] is what the future of investing looks like.”

Kraken's decision to offer tokenized stocks aligns with its recent expansion into conventional equities trading for U.S.-based clients, which includes over 11,000 publicly listed stocks and ETFs. The company plans to extend this service to the UK, Europe, and Australia, while xStocks represents a parallel expansion leveraging blockchain technology. The launch of xStocks coincides with growing interest in tokenized real-world assets (RWAs), driven by the demand for open financial infrastructure and the efficiencies introduced by digital rails.

The xStocks product will initially include tokenized versions of over 50 U.S. stocks and ETFs, such as Apple, Tesla, Nvidia, and the SPDR. Kraken has not specified a launch date for xStocks but has indicated its intention to expand the list of supported jurisdictions and tokenized assets over time. This move by Kraken is part of a broader industry trend towards democratizing access to traditional financial markets through blockchain technology, making investing more accessible and efficient for a global audience.

Kraken's co-CEO, Sethi, highlighted the transparency and decentralized nature of crypto during Solana's Accelerate event, stating that the whole point of crypto is its ability to see things transparently, decentralized, and open-source, allowing for rapid innovation. This philosophy underpins Kraken's strategy to incorporate more traditional investment options, potentially shifting its competitive focus from crypto-native exchanges to larger brokerages that offer a wide range of investment options.

Kraken's move to tokenize U.S. stocks for non-U.S. clients is a strategic response to the growing demand for accessible and efficient investment opportunities. By leveraging the Solana blockchain, Kraken aims to provide a more inclusive and cost-effective way for global investors to access U.S. equities. This initiative not only expands Kraken's product offerings but also positions the company as a leader in the tokenization of real-world assets, a sector gaining traction due to its potential to democratize investment opportunities and reduce reliance on traditional financial infrastructure.