Kraken plans to list tokenized shares of Nvidia, Apple, Tesla and over 50 other U.S. stocks and exchange-traded funds (ETFs)

The tokens, deployed on Solana

Kraken is planning to list tokenized shares of Nvidia, Apple, Tesla and over 50 other U.S. stocks and exchange-traded funds (ETFs), the Wall Street Journal reported.

The tokens, deployed on Solana and part of Kraken’s xChain initiative, will launch in the coming weeks, according to the report.

The stocks will be represented by real shares held by Backed Finance and can be redeemed 1:1 for their cash value. They will be offered through Kraken’s U.S. subsidiary, Kraken Securities.

Kraken had announced the initial rollout of over 11,000 U.S.-listed stocks and ETFs in April, starting with 10 U.S. states.

This latest announcement expands Kraken’s offering to include tokenized versions of over 50 stocks and ETFs to customers outside of the U.S., starting with Europe, Latin America, Africa and Asia.

The move puts Kraken in direct competition to platforms like Robinhood (NASDAQ:HOOD) and makes it the first exchange to successfully offer tokenized shares of major U.S. stocks. Binance attempted to launch tokenized U.S. stocks in 2021 but canceled their plans eventually due to regulatory uncertainty.

A Kraken spokesperson told the Journal that the exchange is “actively working with various regulators” to ensure that xStocks can be offered legally in each jurisdiction as regulation varies.

The xStocks will initially be offered to a limited number of customers, with broader availability expected later in the year.

Tokenization, which turns real-world assets into blockchain tokens, has become the latest buzz word in crypto with more and more companies starting to enter the space. Some, including Ondo Finance, BlackRock (NYSE:LQD) and Franklin Templeton, have long been pioneers in the area, pushing their overall tokenization market to a $65 billion market cap as of May.