Kraken Launches Tokenized U.S. Stocks for Global Investors
Kraken, a popular crypto exchange, is set to introduce tokenized versions of major U.S. stocks. This move will allow international users to trade tokenized stocks adn ETFs, including Apple, Tesla, and Nvidia, around the clock. The new product, called “xStocks,” will be available in the coming weeks.
Thes tokenized shares will be built on the Solana (SOL) blockchain and backed by the actual securities.Kraken’s partner, Backed Finance, will handle the purchase and custody of the real shares, ensuring the token prices reflect market values. Users can redeem these tokens for their cash value.
The xStocks will be accessible to customers in Europe, Latin America, Africa, and Asia. U.S.-based users are excluded due to regulatory restrictions. Kraken co-CEO arjun Sethi saeid, “We’re making it easier for global investors to access U.S. equities.”
Tokenized stocks offer several advantages. They reduce fees and settlement times for overseas investors.The tokens can also be moved to external wallets or used as collateral in decentralized finance (DeFi) applications.
While Binance previously offered similar products,they were halted due to regulatory concerns. Kraken is working closely with regulators to avoid similar issues. This move comes as major players like BlackRock and Robinhood show renewed interest in tokenization.
