As reported by Finance Magnates, the crypto exchange Kraken has outlined plans to provide tokenized versions of leading U.S. equities. Kraken’s announcement detailed that a new collection of tokenized equities, known as xStocks, will be introduced, in collaboration with Backed Finance. These assets, which will be operational on the Solana blockchain, are intended to represent actual shares held by Backed in a 1:1 ratio.
Selected non-U.S. clients will purportedly be given the opportunity to trade over 50 U.S. stocks and ETFs. These include Tesla, Nvidia, Apple, and the SPDR S&P 500 ETF (SPY), even beyond traditional market hours.
Kraken’s launch marks it as the first exchange to successfully list tokenized U.S. equities since Binance’s attempt in 2021. Unlike previous models, Kraken’s strategy is based on real securities held in custody and tokenized on a high-speed, low-cost blockchain.
According to Kraken, xStocks tokens are issued as SPL tokens on Solana, making them compatible with wallets and protocols on the network. This compatibility enables users to utilize their tokenized stocks in decentralized finance (DeFi) environments, including as collateral. Kraken’s goal is to facilitate open, borderless trading.
The tokenized equities initiative from Kraken is part of a wider push into traditional finance. Earlier this year, they introduced equities trading for U.S. clients, featuring over 11,000 stocks and ETFs directly through its app. Presently, Kraken is focusing on global accessibility via tokenization. Unlike conventional brokerage accounts, xStocks can be traded 24/7 and potentially employed in decentralized applications, a feature that current traditional finance can’t offer.
The concept of tokenization, previously considered marginal, is now viewed as a viable means to enhance market accessibility and boost liquidity. Plans to expand to the U.K., Europe, and Australia are being considered.
