Crypto exchange Kraken is preparing to launch tokenized stock trading for non-US users

input: Crypto exchange Kraken is preparing to launch tokenized stock trading for non-US users, a move aimed at expanding retail and institutional access to US equities in digital form. The upcoming offering will include tokenized shares of major companies like Apple, Tesla, Meta, and Nvidia, among others.

Crypto exchange Kraken is set to launch tokenized stock trading for non-US users, expanding access to US equities in digital form. The offering will include major companies like Apple, Tesla, Meta, and Nvidia, among others.

Developed with blockchain firm Backed, the new product, branded as “xStocks,” will be available to users across Europe, Latin America, Africa, and Asia in the coming weeks.

Kraken and Backed to Offer 24/7 Access to Tokenized Stocks via Solana and DeFi

xStocks will integrate with Kraken and Solana-based decentralized finance (DeFi) protocols, enabling users to trade tokenized stocks and exchange-traded funds (ETFs) around the clock. The service aims to provide “seamless blockchain-based access” to financial markets traditionally restricted by geographic and regulatory hurdles.

Backed’s initiative will offer real-world equities as onchain tokens, allowing holders to use them across the DeFi ecosystem for activities such as collateralized lending and borrowing, similar to how other crypto assets are utilized.

The tokenized stock market is increasingly seen by crypto firms as the next frontier in digital asset innovation. Kraken’s co-CEO Arjun Sethi has previously stated that tokenized equities could surpass the stablecoin sector in scale.

With Tether currently commanding a supply of roughly $240 billion, Sethi argued that the long-term potential of tokenized stocks and the derivative markets built around them could be significantly larger.

“One tokenized equity is going to be equivalent or larger than Tether,” Sethi said, envisioning hundreds or thousands of tokenized securities actively traded with futures and options markets.

Decentralized Equity Access and a Shift Toward Global Financial Inclusion

Beyond Kraken, other blockchain-native players like Plume Network and WhiteRock are also entering the space, catering to the growing global interest in accessing US equities in a decentralized format. Backed’s integration of xStocks with Solana provides users with the benefits of the blockchain.

Transactions can be executed using stablecoins, fiat, or other cryptocurrencies, with zero trading fees on Kraken. This system allows users to maintain custody of their tokenized shares and use them across compatible DeFi protocols.

The announcement highlights that the use cases for tokenized stocks extend beyond basic trading. For instance, an individual can lend their tokenized Apple stock through a lending protocol to generate yield or use it as collateral for loans without liquidating their position.

Such flexibility, along with continuous access to markets, could drastically alter how individuals and institutions engage with global equities. The move also addresses a key challenge for investors outside the US who face regulatory and logistical obstacles in accessing American financial products.