Crypto
exchange Kraken announced today (Tuesday) it has extended its xStocks
tokenized equity service to European Union clients, following a phased global
rollout that began in late June.
The
expansion allows eligible EU-based investors to trade digital representations
of popular U.S. stocks like Tesla and Amazon and exchange-traded funds
(ETFs) directly through Kraken’s mobile app, powered by Swiss
firm Backed’s tokenization technology.
Since
launching internationally in June, xStocks has generated more than $3.5
billion in combined trading volume across centralized and decentralized
exchanges, according to company data. The service initially made over
60 tokenized equities available to clients across 140 countries outside the
United States.
The
tokenized stock offering addresses longstanding friction points for European
investors seeking U.S. market exposure. Traditional cross-border investing
often involves currency conversion fees, settlement delays tied to U.S. market
hours, and limited transfer flexibility between platforms.
“Expanding
xStocks to the European Union was a natural next step for Kraken, given
our dedicated growth strategy and market presence here,” said Mark
Greenberg, Kraken’s Global Head of Consumer. “For too long, it’s been
unnecessarily challenging to gain exposure to U.S. markets, and
with xStocks we’re removing many of the barriers.”
The service
operates around the clock, 24 hours a day, five days a week, breaking
from traditional equity trading windows. Users can also move their
tokenized holdings between compatible platforms or store them in
self-custody wallets, features unavailable with conventional brokerage
accounts.
Competition Heats Up for
Tokenized Asset Market
Kraken
joins a growing roster of platforms offering tokenized U.S. equities to
international customers. Robinhood
launched similar services for European clients earlier this year,
while rival crypto exchanges
Bybit and KuCoin debuted its own tokenized stock product after
Kraken’s initial June announcement.
The
tokenized equity push comes as Kraken pursues broader business expansion. The
San Francisco-based exchange is
reportedly seeking $500 million in new funding at a $15 billion valuation,
preparing for a potential initial public offering targeted for early 2026. The
company has also sought
regulatory approval from the Securities and Exchange Commission (SEC) for
its tokenized trading platform.
Last week,
Kraken further diversified its offerings by acquiring Breakout, a proprietary
trading platform that provides funded accounts to crypto traders. The
September 1 deal marks Kraken’s entry into the prop trading sector,
allowing qualified traders to access up to $200,000 in trading capital after
passing performance evaluations. Traders who meet the requirements can retain
up to 90% of their profits, with the service set to be integrated into Kraken
Pro over time.
Multi-Chain Strategy
Expands Beyond Solana
Kraken
initially deployed xStocks as SPL tokens on the Solana blockchain but has
since expanded to support additional networks. The company launched
the service on BNB Chain in July and added support for the TRON network in
August, generating over $2.5 billion in combined trading volume across
platforms.
The
exchange announced earlier this month it would bring xStocks to Ethereum
as ERC-20 tokens, tapping into the network’s extensive decentralized
finance ecosystem. Future expansion plans include support for Kraken’s
upcoming Ink blockchain and other “high-impact” networks.
Traditional
market operators have raised concerns about tokenized stock offerings, arguing
they lack investor protection safeguards present in conventional markets.
The World Federation of Exchanges has
pushed regulators to take a harder stance against such products.
Despite
regulatory uncertainty, major exchanges continue pursuing tokenized asset
strategies. Nasdaq filed
a proposal with the SEC in September to offer its own tokenized
securities platform, while eToro announced plans to tokenize 100 popular
U.S. stocks on Ethereum.
Crypto
exchange Kraken announced today (Tuesday) it has extended its xStocks
tokenized equity service to European Union clients, following a phased global
rollout that began in late June.
The
expansion allows eligible EU-based investors to trade digital representations
of popular U.S. stocks like Tesla and Amazon and exchange-traded funds
(ETFs) directly through Kraken’s mobile app, powered by Swiss
firm Backed’s tokenization technology.
Since
launching internationally in June, xStocks has generated more than $3.5
billion in combined trading volume across centralized and decentralized
exchanges, according to company data. The service initially made over
60 tokenized equities available to clients across 140 countries outside the
United States.
The
tokenized stock offering addresses longstanding friction points for European
investors seeking U.S. market exposure. Traditional cross-border investing
often involves currency conversion fees, settlement delays tied to U.S. market
hours, and limited transfer flexibility between platforms.
“Expanding
xStocks to the European Union was a natural next step for Kraken, given
our dedicated growth strategy and market presence here,” said Mark
Greenberg, Kraken’s Global Head of Consumer. “For too long, it’s been
unnecessarily challenging to gain exposure to U.S. markets, and
with xStocks we’re removing many of the barriers.”
The service
operates around the clock, 24 hours a day, five days a week, breaking
from traditional equity trading windows. Users can also move their
tokenized holdings between compatible platforms or store them in
self-custody wallets, features unavailable with conventional brokerage
accounts.
Competition Heats Up for
Tokenized Asset Market
Kraken
joins a growing roster of platforms offering tokenized U.S. equities to
international customers. Robinhood
launched similar services for European clients earlier this year,
while rival crypto exchanges
Bybit and KuCoin debuted its own tokenized stock product after
Kraken’s initial June announcement.
The
tokenized equity push comes as Kraken pursues broader business expansion. The
San Francisco-based exchange is
reportedly seeking $500 million in new funding at a $15 billion valuation,
preparing for a potential initial public offering targeted for early 2026. The
company has also sought
regulatory approval from the Securities and Exchange Commission (SEC) for
its tokenized trading platform.
Last week,
Kraken further diversified its offerings by acquiring Breakout, a proprietary
trading platform that provides funded accounts to crypto traders. The
September 1 deal marks Kraken’s entry into the prop trading sector,
allowing qualified traders to access up to $200,000 in trading capital after
passing performance evaluations. Traders who meet the requirements can retain
up to 90% of their profits, with the service set to be integrated into Kraken
Pro over time.
Multi-Chain Strategy
Expands Beyond Solana
Kraken
initially deployed xStocks as SPL tokens on the Solana blockchain but has
since expanded to support additional networks. The company launched
the service on BNB Chain in July and added support for the TRON network in
August, generating over $2.5 billion in combined trading volume across
platforms.
The
exchange announced earlier this month it would bring xStocks to Ethereum
as ERC-20 tokens, tapping into the network’s extensive decentralized
finance ecosystem. Future expansion plans include support for Kraken’s
upcoming Ink blockchain and other “high-impact” networks.
Traditional
market operators have raised concerns about tokenized stock offerings, arguing
they lack investor protection safeguards present in conventional markets.
The World Federation of Exchanges has
pushed regulators to take a harder stance against such products.
Despite
regulatory uncertainty, major exchanges continue pursuing tokenized asset
strategies. Nasdaq filed
a proposal with the SEC in September to offer its own tokenized
securities platform, while eToro announced plans to tokenize 100 popular
U.S. stocks on Ethereum.
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