Kraken to Offer Tokenized U.S. Stocks on Solana Blockchain, Eyes Global Clients

Crypto exchange Kraken plans to offer tokenized versions of popular U.S. equities. According to the exchange's announcement today (Thursday), Kraken will list a new suite of tokenized equities dubbed xStocks in partnership with Backed Finance. The assets will reportedly be live on the Solana blockchain and represent actual shares held 1:1 by Backed.

Clients in selected non-U.S. jurisdictions will reportedly be able to trade more than 50 U.S. stocks and ETFs, including Tesla, Nvidia, Apple, and the SPDR S&P 500 ETF, outside traditional market hours.

Round-the-Clock Stock Access

The launch positions Kraken among the first exchanges to successfully list tokenized U.S. equities since Binance's short-lived effort in 2021. Unlike earlier iterations, Kraken’s approach relies on real securities held in custody and tokenized on a fast, low-cost blockchain.

“We’re reimagining equities investing and ushering in a new wave of demand from clients seeking better alternatives to the status quo,” said Mark Greenberg, Kraken Global Head of Consumer.

“Access to traditional U.S. equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term remains slow, costly, and restricted. With xStocks, we’re using blockchain technology to deliver something better, open, instant, accessible, and borderless exposure to some of America’s most iconic companies.”

Read more: Kraken Puts Cyprus Licence to Use: Launches Crypto Derivatives in Europe

The xStocks tokens are reportedly issued as SPL tokens on Solana, meaning they are compatible with wallets and protocols on the network. This integration also allows users to leverage their tokenized stocks in decentralized finance environments, including as collateral.

Borderless Trading

Kraken’s tokenized equities initiative builds on its broader push into traditional finance. Earlier this year, it launched equities trading for U.S. clients, offering over 11,000 stocks and ETFs directly through its app.

Now, Kraken is targeting global access via tokenization. Unlike traditional brokerage accounts, xStocks can be traded 24/7 and potentially used in decentralized applications, a combination that traditional finance currently cannot match.

Tokenization, once a fringe concept, is emerging as a practical tool to increase market access and improve liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term. Expansion to the U.K., Europe, and Australia is expected soon.

This week, Kraken debuted its crypto derivatives products for European users. The offering is made through a Cyprus license acquired by the company earlier this year. The exchange can reportedly passport its Markets in Financial Instruments Directive license from Cyprus to offer crypto derivatives across other countries in the European Economic Area.