Kraken, one of the world’s leading cryptocurrency exchanges, is preparing to roll out tokenized versions of over 50 U.S.-listed stocks and Exchange Traded Funds (ETFs). This ambitious initiative, dubbed xStocks, is primarily aimed at global investors and is designed to provide round-the-clock access to some of the most popular American equities including Apple, Tesla, Nvidia, and the widely tracked SPDR S&P 500 ETF.
This development signals a potentially major shift in how traditional financial products can be accessed and traded across the globe. It’s especially noteworthy for investors outside the United States facing high brokerage fees and limited market access.
Kraken’s “xStocks” to Offer Tokenized U.S. Market Access on Solana
Kraken’s upcoming product, xStocks, will be powered by the high-speed Solana blockchain. The system will allow users to buy digital tokens that represent real stocks, with these tokens backed on a one-to-one basis by the actual shares. These underlying shares will be held by Kraken’s partner for this venture, Backed Finance.
These tokens will mirror the value of their underlying assets and can be redeemed for cash equivalents. A key differentiator from traditional markets is that xStocks will trade 24/7, even during weekends and public holidays.
Kraken has indicated that Solana was picked for its high throughput, low transaction costs, and burgeoning ecosystem. The exchange also has an eye on future expansion, suggesting xStocks could eventually operate on other blockchain networks, paving the way for broader adoption and multi-chain support.
24/7 Trading, Lower Barriers Key Benefits for Global xStocks Users
The initial rollout will focus on Europe, Latin America, Africa, and Asia, where access to U.S. stocks often remains slow, expensive, and cumbersome. By using blockchain, Kraken aims to reduce friction, improve transparency, and deliver faster settlement times.
This approach eliminates the need for multiple financial intermediaries and allows fractional investing empowering retail investors across regions previously underserved by traditional brokers.
Kraken Eyes Global Reach, Emphasizes Regulatory Engagement Unlike Past Efforts
Tokenized securities are gaining momentum, though not without controversy. While Binance launched a similar product in 2021, regulatory pressures forced its early shutdown.
Kraken, however, emphasizes regulatory engagement and transparency to ensure long-term success. In April, the exchange began offering tokenized stocks to U.S. customers and plans further expansion into the UK and Australia.
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