Kraken, Trust Wallet's Tokenized Equities: Breaking Chains, Bounded by Law

Kraken, a leading global cryptocurrency exchange, has partnered with Trust Wallet, one of the world’s largest self-custody crypto wallets, to expand access to tokenized equities through Backed’s xStocks platform. This collaboration aims to bring interoperable tokenized equities to over 200 million Trust Wallet users worldwide, enabling them to trade and hold 60 tokenized equity products using local fiat currencies across multiple blockchains, including Solana, Ethereum, BNB Chain, and Tron. The integration allows users to deposit, withdraw, and manage xStocks directly within their Trust Wallet, bypassing traditional brokerage accounts and facilitating seamless cross-chain transactions Cointelegraph,^[1]. Kraken co-CEO Arjun Sethi emphasized the initiative as a “paradigm shift,” envisioning a future where global markets operate “without borders, without barriers” CoinCentral,^[2].

The xStocks platform, developed in partnership with Swiss fintech firm Backed, has already generated over $4 billion in combined trading volume since its June 2025 launch across centralized and decentralized exchanges. These tokenized equities represent fully collateralized on-chain assets, mirroring the value of real-world U.S. stocks and ETFs, such as Tesla (TSLAx) and Apple (AAPLx). Trust Wallet CEO Eowyn Chen highlighted the partnership as a bridge between Web3 and traditional markets, enabling users to access tokenized equities “without a brokerage account” BeInCrypto,^[3]. Backed co-founder Adam Levi described cross-chain accessibility as a “public good,” underscoring the product’s role in democratizing global financial participation CoinInsider,^[4].

Despite the broad user base, regulatory constraints limit immediate adoption. xStocks are currently unavailable in the United States, the United Kingdom, Canada, and Australia, with Kraken noting that “geographic restrictions apply” to ensure compliance with securities laws and Know Your Customer (KYC) requirements Finance Feeds,^[5]. Tokenization expert Ross Shem of Stobox observed that while xStocks leverage blockchain technology, they remain “bound by securities laws,” distinguishing them from unregulated crypto assets Coindesk,^[6]. This regulatory framework necessitates investor verification and adherence to jurisdiction-specific compliance measures, narrowing the pool of eligible users compared to Kraken’s stated 200 million Trust Wallet audience.

The partnership aligns with broader industry trends in real-world asset (RWA) tokenization, which analysts project could reach trillions in market value by the 2030s. Kraken’s expansion into the European Union, announced in September 2025, further underscores the growing demand for blockchain-based access to traditional markets. The platform now supports 24/5 trading for EU clients, offering fractional ownership, instant settlements, and integration with decentralized finance (DeFi) protocols. This move addresses longstanding barriers such as foreign exchange friction and settlement delays, as highlighted by Kraken’s Global Head of Consumer, Mark Greenberg DeFi Planet,^[7].

Looking ahead, Kraken and Trust Wallet plan to extend xStocks’ multi-chain support to additional blockchains, including Ethereum’s mainnet and the Ink blockchain, to deepen interoperability. The collaboration reflects Kraken’s strategic focus on decentralizing custody and expanding tokenized asset adoption, while Trust Wallet positions itself as a bridge between Web3 and traditional finance. However, regulatory fragmentation remains a critical challenge, with the World Federation of Exchanges cautioning that tokenized securities may lack key shareholder rights like voting Coinspeaker,^[8]. As the market evolves, the balance between innovation and compliance will shape the trajectory of tokenized equities as a mainstream asset class.