Blockchain Moves Into Wall Street: Kraken Tokenizes Popular U.S. Stocks

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The financial world is witnessing a groundbreaking shift as blockchain technology blurs the lines between traditional markets and digital innovation. Kraken, a leading U.S.-based cryptocurrency exchange, is pioneering this transformation by launching tokenized versions of popular American stocks — a move that could redefine how global investors access Wall Street.

This new offering, known as xStocks, allows non-U.S. customers to trade digital representations of major equities like Apple, Tesla, and NVIDIA, as well as key ETFs such as SPDR S&P 500 (SPY) and SPDR Gold Shares (GLD). Built on the high-speed Solana blockchain, these tokens bring the efficiency and accessibility of crypto markets to traditional assets.

What Are xStocks and How Do They Work?

xStocks are blockchain-based tokens that represent ownership in real-world securities. Each token is fully backed by its underlying stock or ETF, with Kraken’s partner, Backed Finance, responsible for purchasing and holding the actual shares. This ensures that each xStock is redeemable for the cash value of the corresponding asset, maintaining price alignment through transparent backing.

Unlike traditional stock trading — which operates only during market hours and business days — xStocks enable 24/7 trading, giving international investors unprecedented access to U.S. equities at any time, even when Wall Street is closed.

👉 Discover how blockchain is reshaping access to global financial markets.

Expanding Global Access to U.S. Equities

For many international investors, buying U.S. stocks has historically been a cumbersome process. High brokerage fees, slow settlement times (often T+2 or longer), and complex compliance requirements create significant barriers.

Kraken’s xStocks aim to eliminate these friction points. By leveraging decentralized infrastructure, the platform offers:

Arjun Sethi, Co-CEO of Kraken, emphasized that overseas investors often face "a lot of friction" when trying to enter U.S. markets through local brokers. With xStocks, they can bypass traditional intermediaries and gain near-instant exposure to some of the world’s most sought-after companies.

Supported Assets and Geographic Rollout

Kraken plans to launch more than 50 tokenized stocks and ETFs across multiple sectors, including technology, energy, and precious metals. Initial offerings include:

The service will roll out in phases across Europe, Latin America, Africa, and Asia, targeting regions where demand for U.S. market exposure is high but access remains limited. Notably, U.S. clients will not have access to xStocks due to regulatory constraints.

Built on Solana: Speed, Scalability, and Efficiency

Choosing Solana as the underlying blockchain was a strategic decision. Known for its high throughput and low transaction fees, Solana enables fast and cost-effective transfers of xStocks — critical for a product aiming to compete with traditional brokerage platforms.

Tokenization on Solana also allows for seamless interoperability with decentralized finance (DeFi) ecosystems. Users can transfer their xStocks to personal crypto wallets or use them in DeFi protocols — opening possibilities like using Apple or Tesla tokens as collateral for crypto loans.

Regulatory Landscape and Industry Precedents

While innovative, tokenized securities operate in a complex regulatory environment. Binance previously launched similar stock tokens in 2021, including Tesla and Apple, but discontinued them after regulators raised concerns about licensing and investor protection.

Kraken acknowledges these challenges and states it is actively collaborating with regulators across multiple jurisdictions to ensure compliance. The company believes that transparency, full asset backing, and clear redemption mechanisms position xStocks within acceptable regulatory frameworks.

This effort aligns with growing institutional interest in asset tokenization. In early 2025, the U.S. Securities and Exchange Commission (SEC) hosted a roundtable discussion on securities tokenization, attended by major players like BlackRock and Robinhood, both of which expressed support for the concept under proper oversight.

👉 See how next-gen financial platforms are bridging crypto and traditional investing.

Why Tokenization Matters: The Bigger Picture

Blockchain proponents have long argued that tokenizing real-world assets offers transformative benefits:

With Kraken’s move, we’re seeing one of the first large-scale applications of this vision in equity markets.

Frequently Asked Questions (FAQ)

Q: What are tokenized stocks?
A: Tokenized stocks are digital tokens on a blockchain that represent ownership in real shares of a company. They are backed 1:1 by actual securities held by a custodian and can be traded like cryptocurrencies while mirroring the price of the underlying stock.

Q: Can I redeem my xStock for actual shares?
A: While direct share ownership isn't transferred, xStocks can be redeemed for the cash value of the underlying security. This ensures price parity and provides liquidity without requiring individual shareholdership.

Q: Why can’t U.S. investors use xStocks?
A: U.S. financial regulations impose strict rules on securities trading and clearing. To comply with current laws, Kraken has limited xStock availability to non-U.S. customers while engaging with regulators on potential future expansion.

Q: How does this differ from CFDs or other synthetic products?
A: Unlike contracts for difference (CFDs), which are derivative instruments with counterparty risk, xStocks are asset-backed tokens. Each token corresponds to a real share held in reserve, reducing reliance on intermediaries.

Q: Is there risk of depegging or price mismatch?
A: Kraken mitigates this through full collateralization and redemption mechanisms. Since each xStock is backed by actual holdings and redeemable for cash value, significant deviations from market price are unlikely under normal conditions.

Q: Could other assets be tokenized in the future?
A: Yes. Beyond stocks and ETFs, industries are exploring tokenization of real estate, bonds, commodities, and private equity. Kraken’s initiative may pave the way for broader adoption across asset classes.

The Future of Finance Is Hybrid

As blockchain continues to mature, the boundary between crypto and traditional finance is fading. Products like xStocks represent a hybrid model — combining the innovation of decentralized technology with the stability of regulated financial instruments.

With increasing support from regulators, institutions, and tech innovators, securities tokenization could soon become standard practice, unlocking trillions in illiquid assets and democratizing global investment opportunities.

👉 Explore the future of asset tokenization and digital finance today.

Kraken’s xStocks may be just the beginning. As more platforms adopt similar models — under responsible frameworks — we could see a financial ecosystem that’s faster, fairer, and accessible to anyone with an internet connection.

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