Key Points
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Kraken will offer tokenized U.S. stocks and ETFs to non-U.S. customers, with trading expected to begin in the coming weeks via the Solana blockchain.
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Over 50 assets, including shares of Apple, Tesla, and the SPDR S&P 500 ETF (SPY), will be available as on-chain tokens branded as xStocks.
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xStocks will trade 24/7 and be redeemable for cash, aiming to reduce barriers for international investors seeking access to U.S. equities.
Kraken, a U.S.-based cryptocurrency exchange, announced plans to allow non-U.S. customers to trade tokenized versions of U.S.-listed stocks and ETFs.
The new offering, expected to launch in the coming weeks, will include stocks like Apple, Tesla, and Nvidia, as well as funds such as the SPDR S&P 500 ETF (SPY) and SPDR Gold Shares.
The service will be offered in partnership with Backed Finance, a company that specializes in tokenized securities.
It will use the Solana blockchain to issue the tokenized assets, branded as xStocks, which are designed to represent real stocks on-chain and trade around the clock.
Kraken’s U.S.-based customers will not be eligible to access the service, which is being rolled out to users in Europe, Latin America, Africa, and Asia.
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.
A new layer of market access, built on… pic.twitter.com/eXUnpHDipF
— Kraken Exchange (@krakenfx) May 22, 2025
What Are xStocks?
Each xStock token will be backed 1:1 by shares of the actual stock or ETF. Backed Finance will purchase and custody the underlying securities and issue tokens on Solana using its SPL token standard.
According to Kraken, xStocks will be redeemable for the cash value of the underlying assets, helping to keep the price of the tokens in line with the real-world shares.
Kraken said the decision to launch on Solana was due to its performance, low latency, and broad ecosystem. The company also stated it may consider supporting other blockchains in the future.
» TRADE xStocks ON KRAKEN «
Purpose and Potential
Kraken says tokenized stocks could make U.S. equities more accessible for international users, especially in markets where investing in U.S. stocks involves high fees or delayed settlement. The ability to trade these assets 24/7 may also appeal to investors looking for flexibility beyond traditional market hours.
Users may eventually be able to transfer xStocks to external wallets, use them on other exchanges, or apply them as collateral for trading strategies, similar to how cryptocurrencies are used today.
Regulatory Considerations
Tokenized stocks are not new. Binance previously offered similar products in 2021 but suspended them after regulatory concerns. Kraken said it is “actively working with various regulators” to ensure compliance with local laws in each region where xStocks will be offered.
In the U.S., tokenization is gaining more attention among financial institutions and regulators. Firms such as BlackRock and Robinhood have publicly supported tokenized finance, and the Securities and Exchange Commission (SEC) held a discussion on the topic earlier this month.
At present, tokenized equities remain a niche market. According to rwa.xyz, only around $373 million worth of tokenized stocks are currently issued on-chain, compared to over $2.8 billion in tokenized fund assets.
