Kraken is trying to turn tokenized equities from a side‑show into a parallel equity market running on crypto rails through its xStocks platform and a new Nasdaq partnership. Summary xStocks offers 60+ tokenized U.S. stocks and ETFs, fully backed 1:1, with 24/5 trading and EU rollout aimed at investors shut out of Wall Street hours. Kraken is acquiring issuer Backed Finance and has logged over $25B in volume in under eight months across CEX, DEX, and mint/redemption flows. A Nasdaq partnership will use xStocks tech to move listed securities onto blockchain rails, while regulators warn that “mimic” products risk diluting shareholder rights. Kraken is trying to turn tokenized equities from a side‑show into a parallel equity market that runs on crypto rails, 24/7. Its xStocks platform now offers more than 60 tokenized U.S. stocks and ETFs, has been rolled out to eligible clients across the European Union, and has processed over $25 billion in cumulative transaction volume in under eight months, according to company data and recent coverage. How Kraken’s tokenized stock platform works xStocks lets users buy, sell and transfer blockchain‑based tokens that mirror real U.S. equities like Tesla, Amazon, Nvidia and broad‑market ETFs, with each token fully backed 1:1 by the underlying security held by a licensed custodian in a bankruptcy‑remote structure. Cointelegraph and Finance Magnates report that the product gives investors 24/5 trading in digital certificates that track U.S. prices, extended hours beyond Wall Street’s 9‑to‑5, and the ability to move positions between compatible venues or self‑custody them on‑chain. Kraken’s European rollout, announced in September 2025, explicitly targets clients who “for too long” have found it “unnecessarily challenging to gain exposure to U.S. markets,” as global head of consumer Mark Greenberg put it. Under the hood, Kraken is pulling tokenization closer to its core stack. The exchange has agreed to acquire Backed Finance – the issuer behind xStocks – integrating issuance and trading under one roof just as it prepares for a planned 2026 IPO. AInvest and other outlets note that xStocks has already surpassed $25 billion in total transaction volume, including centralized venue trading, DeFi liquidity, and mint/redemption flows, with partnerships in place to distribute the tokens via platforms like Bybit and Gate.io to users in more than 110 countries. In parallel, a separate initiative will see Nasdaq use Payward’s (Kraken’s parent) xStocks tokenization technology to move listed securities onto blockchain rails for global distribution – a sign that incumbents increasingly prefer to build on top of Kraken’s infrastructure rather than compete with it from scratch. Market structure: equity rails on crypto infrastructure The pitch is blunt: make stocks as composable as stablecoins. AInvest summarises Kraken’s goal as “making equities as composable as stablecoins in web3 ecosystems,” letting traders post tokenized stocks as collateral, wrap them into on‑chain strategies, or trade perpetual futures that reference xStocks rather than traditional listings. A recent Business Wire release notes that Kraken has already listed “the world’s first regulated tokenized equity perpetual futures,” using xStocks as the reference layer so traders can “respond to market events without waiting for traditional markets to open.” That reframes tokenized equities from a convenient wrapper into a potential new base layer: equity exposure that trades like crypto, clears across borders, and is governed by a mix of securities law and smart contracts rather than just a single national exchange rulebook. Regulation remains the hard edge. The World Federation of Exchanges has warned that some tokenized stock products act as “mimics” that may not deliver full shareholder rights, and Nasdaq’s 2025 filing to list tokenized securities alongside conventional shares was a direct response to that risk. Kraken is betting that by keeping xStocks fully backed, integrating the issuer, and pushing for regulated derivatives on top, it can stay on the right side of that line – and, in the process, turn its tokenized equity platform into a meaningful revenue and strategic pillar ahead of its planned public listing.
