Kraken to Launch Tokenized Versions of Over 50 U.S. Stocks and ETFs

Kraken, a U.S.-based cryptocurrency exchange, plans to launch tokenized versions of over 50 U.S. stocks and exchange-traded funds (ETFs) for non-U.S

Kraken, a leading U.S.-based cryptocurrency exchange, is set to launch tokenized versions of over 50 U.S. stocks and exchange-traded funds (ETFs) for its non-U.S. customers.

This initiative, named xStocks, will see these assets available for trading on the Solana blockchain, providing round-the-clock access.

The range of tokenized stocks will span high-profile companies like Apple, Tesla, and Nvidia, while also including popular ETFs such as SPY and GLD. These assets will be accessible to Kraken’s clients in Europe, Latin America, Africa, and Asia.

Each xStock will be backed by an actual share, which will be covered on Solana as an SPL token. A partner of Kraken’s, Backed, will manage the acquisition of the underlying securities.

This venture aims to facilitate simpler and more efficient access to the U.S. markets for international investors. It will allow them to trade these assets outside of traditional trading hours and at lower costs compared to existing cross-border transactions.

Kraken's choice of Solana for xStocks is motivated by the blockchain's outstanding performance, low latency, and its rapidly expanding global ecosystem.

Furthermore, Kraken is exploring the possibility of expanding its offering of tokenized securities to include other blockchains in the future stages of this initiative.

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Kraken is launching tokenized versions of over 50 U.S. stocks and exchange-traded funds (ETFs) on Solana for non-U.S. customers, the firm announced Thursday.

The move will allow the cryptocurrency exchange to offer its clients in Europe, Latin America, Africa and Asia to trade the assets around-the-clock. The tokenized securities will be sold as SPL tokens on Solana, and will be backed by actual shares, which will be managed by Backed, a partner of Kraken’s.

The offering will include some of the most popular U.S. stocks, such as Apple, Tesla, Nvidia, META and Zoom, as well as ETFs like SPY, IVV, VOO, GLD and XLK.

This initiative aims to provide international investors with an easier and more efficient way to gain exposure to the U.S. markets. Investors will be able to trade these assets in a more seamless manner, circumventing traditional trading hours and reducing the fees associated with cross-border transactions.

Solana was chosen for this offering due to its speed, low latency and rapidly expanding global ecosystem.

Kraken is also exploring the possibility of expanding its offering of tokenized securities to include other blockchains in the future.