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 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. 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.
This article was written by Jared Kirui at www.financemagnates.com.
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