Cryptocurrency exchange Kraken has announced the upcoming launch of over 50 tokenized stocks and ETFs, offering 24/7 trading of iconic U.S. companies like Apple, Tesla, and Nvidia to clients outside the United States. This landmark initiative, powered by blockchain technology, positions Kraken at the forefront of the rapidly growing trend of asset tokenization and bridges the gap between traditional finance and the digital asset economy.

xStocks on Solana

Image Source: Kraken

Kraken’s new offering, branded as “xStocks,” is the result of a strategic partnership with Backed, a leading issuer of tokenized financial instruments, and the Solana Foundation. These tokenized equities will be deployed as SPL tokens on the Solana blockchain, known for its speed, low fees, and robust global ecosystem, enabling seamless, 24/7 trading for eligible users in Europe, Latin America, Africa, and Asia.

Unlike conventional stock markets, which restrict trading to business hours and are often hampered by regional barriers and high fees, xStocks will allow investors to buy, sell, and hold digital representations of U.S.-listed stocks and ETFs at any time, from anywhere, with just a few taps on the Kraken app.

How Does It Work?

Each xStock token is backed 1:1 by real shares held by Backed Finance, ensuring that every digital token represents a genuine stake in the underlying asset. Investors can redeem their tokens for the cash value of the actual stock or ETF, providing transparency and trust in the system.

The xStocks platform will initially feature more than 50 of the world’s most sought-after equities and ETFs, including the SPDR S&P 500 ETF (SPY) and SPDR Gold Shares (GLD), alongside tech giants like Apple, Tesla, and Nvidia. This approach not only democratizes access to U.S. markets but also unlocks new functionalities such as using xStocks as collateral within decentralized finance (DeFi) applications unavailable in traditional finance.

Why Now?

Kraken’s move comes amid a global surge in interest in asset tokenization, as investors and institutions seek more efficient, inclusive, and innovative ways to access financial markets. While previous attempts by competitors like Binance faced regulatory hurdles, Kraken’s focus on non-U.S. markets and its proactive engagement with regulators aim to ensure compliance and long-term viability.

The launch also reflects a broader shift in regulatory attitudes, particularly under the current U.S. administration, which has signaled a more open stance toward crypto infrastructure and asset tokenization. Industry leaders such as BlackRock and Robinhood are also exploring similar initiatives, signaling that tokenized securities are poised to become a mainstream investment vehicle.

What’s Next?

Kraken’s xStocks platform is expected to roll out in the coming weeks, with further expansion planned as regulatory clarity improves worldwide. The exchange’s bold step is likely to accelerate the convergence of crypto and traditional finance, offering millions of investors unprecedented access, flexibility, and control over their portfolios.