Kraken has announced a new offering that allows non-U.S. users to trade tokenized versions of U.S. stocks. This service, called “xStocks,” will include over 50 equities and ETFs, beginning with major names like Apple, Tesla, and Nvidia. The xStocks tokens will be issued on the Solana blockchain and are fully backed 1:1 by the underlying shares.
Unlike traditional stock markets that operate on a fixed schedule, Kraken’s tokenized assets will be available 24/7. This gives global investors the ability to enter and exit positions any time. Kraken is working with regulatory partners to ensure full compliance across supported jurisdictions.
Today we’re announcing our new partnership with @BackedFi for the launch of xStocks on @Solana 🚀@xStocksFi will offer tokenized versions of U.S.-listed equities, available soon to eligible Kraken clients in select non-U.S. markets.
— Kraken Exchange (@krakenfx) May 22, 2025
A new layer of market access, built on… pic.twitter.com/eXUnpHDipF
What Are Kraken Digital Stock Tokens?
The Kraken digital stock tokens are blockchain-based representations of real-world equities. Each token directly reflects the value of an underlying share. A Swiss-based firm, Backed Finance, holds the actual stocks that back each token. This structure ensures that token prices track the real asset and can be redeemed for cash equivalent.
The tokens will use the SPL token standard on Solana. Users can store them in non-custodial wallets and potentially use them in DeFi applications. Kraken stated that the service is unavailable to U.S. residents due to regulatory restrictions but will be live in Europe, Asia, Africa, and Latin America.
Why This Matters: Democratizing Access to U.S. Stocks
Traditional equity markets have high barriers to entry for international investors. Brokerage access, currency conversions, and settlement restrictions often limit participation. Kraken’s move aims to eliminate these barriers by allowing global users to access U.S. equities through digital wallets.
For example, an investor in Argentina can now hold and trade a Tesla token as easily as holding USDT. Moreover, the ability to transfer these tokens to a wallet or exchange them outside traditional hours gives users more flexibility. Kraken also plans to introduce ETFs, expanding investor options even further.
Another big step for crypto:
— wale.moca 🐳 (@waleswoosh) May 22, 2025
1) Kraken plans to tokenize 50 US stocks and ETFs.
2) "xStocks" will be tradable 24/7 on the Solana blockchain and are backed by real shares.
3) Cheaper and easier access for investors.
Huge pic.twitter.com/sSUQzTjOX9
24/7 Trading and Lower Costs
By leveraging blockchain infrastructure, Kraken can offer continuous trading and lower fees. Traditional stock exchanges typically close on weekends and holidays. In contrast, Kraken’s digital tokens will be available every hour of the week.
Settlement on the blockchain also removes delays tied to intermediary processes. There’s no need for a clearinghouse to process trades. This speed, combined with cost reduction, makes tokenized assets more efficient than many traditional systems.
Lessons from Binance and Regulatory Focus
Kraken’s entry into tokenized equities follows an earlier attempt by Binance in 2021. Binance shut down its stock token service after scrutiny from European regulators. Kraken is avoiding similar issues by structuring the service through Backed Finance and limiting access only to approved regions.
Each token is designed to be MiFID II compliant and aligns with Swiss regulatory standards. Kraken has stated that compliance will be a top priority as they expand the service.
Technical Structure and Custody Model
The token issuance follows a strict process. Backed Finance issues the tokens only after acquiring the real shares. The Solana-based xStocks use smart contracts to enforce token behavior, including redemption rules and price parity.
This model gives the user a digital instrument with the economic rights of the stock but not voting rights. In many cases, this limitation simplifies regulatory classification while still offering users economic exposure.
Potential Use Cases and Market Impact
Kraken’s tokens may serve more than just investment purposes. Users could use them as collateral in DeFi protocols or as yield-generating assets. Additionally, developers could build applications that use tokenized assets in lending, borrowing, or automated strategies.
Institutional interest in tokenization continues to grow. According to a 2024 report from Boston Consulting Group, tokenized real-world assets could reach a $30 trillion market by 2030. Kraken’s stock tokens represent a small but critical step in aligning crypto platforms with traditional finance.
Final Thoughts: A New Frontier for Global Investors
Kraken’s digital stock tokens could reshape how global users access U.S. equities. By reducing friction, increasing access, and offering flexible trading, Kraken is merging traditional equity markets with blockchain tools.
While U.S. residents are excluded, the rest of the world will gain access to an entirely new asset class. Kraken’s offering may also encourage other exchanges to revisit tokenization with better legal frameworks and more robust infrastructure.
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