Thomas Daniels
Cryptocurrency exchange Kraken has announced the rollout of tokenized U.S. equities for non-U.S. clients, signaling a strategic expansion beyond traditional crypto offerings. This initiative, developed in partnership with Backed Finance, will leverage the Solana blockchain to deliver digital tokens backed 1:1 by actual shares, providing a seamless gateway to U.S. stock exposure for international investors.
Branded as “xStocks,” the new product line includes over 50 major U.S.-listed companies and exchange-traded funds (ETFs), including Apple, Tesla, Nvidia, SPDR S&P 500, and SPDR Gold Shares. These tokens will be redeemable for their cash equivalent and will be available to clients in Europe, Latin America, Africa, and Asia. U.S. residents will be excluded due to regulatory restrictions.
Solana’s high-performance blockchain infrastructure was chosen for its low latency and capacity for 24/7 trading, effectively removing the limitations of traditional market hours. This technological choice supports Kraken’s broader goal of democratizing access to financial markets by enabling continuous, decentralized trading of real-world assets.
Kraken co-CEO Arjun Sethi emphasized the transparency and innovation at the core of crypto technology, stating during Solana’s Accelerate event that “there’s no reason why companies like us can’t morph to embrace open-source, decentralized infrastructure.”
The move positions Kraken in direct competition with both crypto-native exchanges and traditional fintech platforms such as Robinhood, which has also disclosed plans to offer tokenized U.S. stocks through a proprietary blockchain tailored for European investors.
Real-world asset (RWA) tokenization is experiencing rapid growth, with market capitalization rising from $15.9 billion at the start of the year to $22.7 billion by late May—an increase of nearly 43%. Despite this, tokenized stocks still represent a relatively small portion of the market, valued at just $373.4 million. Leading segments include tokenized private credit and U.S. Treasurys.
This strategic pivot toward tokenization reflects a broader industry trend aimed at reducing reliance on traditional financial intermediaries, cutting operational costs, and expanding access to investment products. Kraken’s approach underscores the increasing convergence of conventional finance and blockchain technology, setting a new precedent for global investment platforms.
