Crypto exchange Kraken plans to offer tokenized
versions of popular U.S. equities. According to the exchange’s announcement, Kraken
will list a new suite of tokenized equities called xStocks in partnership with
Backed Finance. The assets will reportedly be live on the Solana
blockchain and represent actual shares held 1:1 by Backed.
Clients in selected non-U.S. jurisdictions will reportedly
be able to trade more than 50 U.S. stocks and ETFs, including Tesla, Nvidia,
Apple, and the SPDR S&P 500 ETF (SPY), outside traditional market hours.
Blockchain Brings Round-the-Clock Stock Access
The launch positions Kraken as the first exchange to
successfully list tokenized U.S. equities since Binance’s short-lived effort in
2021. Unlike earlier iterations, Kraken’s approach relies on real securities
held in custody and tokenized on a fast, low-cost blockchain.
According to the exchange, the xStocks tokens are
issued as SPL tokens on Solana, meaning they are compatible with wallets and
protocols on the network. This integration also allows users to leverage their
tokenized stocks in decentralized finance (DeFi) environments, including as collateral.
Kraken aims to fix that with open, borderless trading.
Kraken’s tokenized equities initiative builds on its
broader push into traditional finance. Earlier this year, it launched equities
trading for U.S. clients, offering over 11,000 stocks and ETFs directly through
its app.
Now, Kraken is targeting global access via
tokenization. Unlike traditional brokerage accounts, xStocks can be traded 24/7
and potentially used in decentralized applications, a combination that traditional
finance currently cannot match.
Tokenization, once a fringe concept, is emerging as a
practical tool to increase market access and improve liquidity. Expansion to
the U.K., Europe, and Australia is expected soon.
This article was written by Jared Kirui at www.financemagnates.com.
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