Kraken is set to launch tokenized shares of Nvidia, Apple, Tesla, and more than 50 other U.S. stocks and ETFs, according to a report by the Wall Street Journal.
These tokenized assets, branded as “xStocks,” will be issued on the Solana blockchain (SOL $177.61) and backed by actual securities held by Kraken’s partner, Backed Finance. Investors worldwide will be able to trade xStocks around the clock.
Among the tokenized ETFs available will be popular funds like the SPDR S&P 500 ETF (SPY), which tracks the S&P 500, and the SPDR Gold Shares (GLD). Each token will represent a real share held in custody and can be redeemed 1:1 for its cash equivalent.
This expansion builds on Kraken’s initial April rollout, which introduced over 11,000 U.S.-listed stocks and ETFs to investors in 10 states through Kraken Securities. Now, the company is broadening its reach beyond the U.S. to customers in Europe, Latin America, Africa, and Asia.
Kraken’s move places it in direct competition with platforms such as Robinhood (HOOD), marking it as the first exchange to successfully offer tokenized versions of major U.S. stocks. Binance had earlier attempted a similar launch in 2021 but shelved the plans amid regulatory uncertainties.
A Kraken spokesperson told the Wall Street Journal that the company is “actively engaging with regulators” worldwide to ensure the xStocks offering complies with local laws, as regulatory frameworks differ by region.
Tokenization, the process of converting real-world assets into blockchain-based tokens, is gaining momentum across the crypto industry. Established players like Ondo Finance, BlackRock, and Franklin Templeton have already helped push the global tokenization market to a $65 billion valuation as of May.
