- Kraken expands into tokenized U.S. equities, offering 24/7 trading on Solana blockchain.
- Over 50 stocks and ETFs, including Apple and Tesla, will be available—but not to U.S. users.
- Backed by real shares, tokens can be used as collateral or redeemed for cash.
Kraken's Push Into Traditional Finance
Kraken, one of the largest U.S.-based crypto exchanges, is making a bold move into traditional markets by launching tokenized versions of U.S. stocks and ETFs for non-U.S. users. The new offering, called xStocks, will allow investors in Europe, Latin America, Africa, and Asia to trade digital representations of popular equities like Apple, Tesla, and Nvidia around the clock on the Solana blockchain.
Each xStock token will be fully backed by actual shares held by Backed Finance, Kraken’s custody partner. Investors can redeem tokens for cash or use them as collateral in crypto trades, blurring the lines between traditional and digital asset markets. The service is expected to roll out in phases over the coming weeks, with more than 50 securities available at launch.
Why This Matters
Kraken’s move signals a growing convergence between crypto and traditional finance. By tokenizing stocks, the exchange aims to eliminate barriers like high international brokerage fees and limited trading hours. "This opens up U.S. markets to investors who previously faced delays or prohibitive costs," said a source familiar with the initiative.
Regulatory hurdles remain a key factor—U.S. users are excluded due to compliance concerns. But for global traders, the ability to hold tokenized equities in digital wallets or leverage them in DeFi applications could reshape how traditional assets are accessed and utilized. Analysts suggest this could pressure legacy brokers to adapt or risk losing market share to blockchain-based alternatives.