Kraken expands access to tokenized shares of major companies for global users
- Kraken is partnering with Backed to create a new product allowing tokenized stocks.
- The xStocks service will include more than 50 U.S. stocks and ETFs traded on the Solana blockchain.
- This move highlights Kraken's adaptation to regulatory changes, allowing broader global access to traditional equities.
Kraken, a crypto exchange known for its history of legal battles with the U.S. Securities and Exchange Commission, has announced its intention to offer tokenized versions of popular U.S. stocks to customers outside the United States. This development emerged recently as Kraken has sought to innovate within the digital asset space, aligning with regulatory adjustments that have occurred under the leadership of President Donald Trump. Consequently, the exchange is teaming up with Backed, a firm that specializes in blockchain-powered financial assets, to introduce over 50 U.S. stocks and exchange-traded funds (ETFs) as tokens on the Solana blockchain. The product, referred to as xStocks, is designed exclusively for users located outside of the U.S. and will facilitate trading around the clock, similar to how cryptocurrencies, such as Bitcoin, are traded. This 24/7 access represents a significant shift in how traditional equities can be engaged by investors internationally. It underscores a growing trend in the financial industry that merges traditional stock trading with blockchain technology, appealing to a diverse clientele willing to navigate the evolving digital landscape. This initiative by Kraken comes after a polarizing period that witnessed various regulatory challenges in the cryptocurrency domain. Notably, the SEC had previously taken legal action against Kraken concerning its digital asset offerings, but the current administration's easing of regulatory pressures has allowed for greater flexibility. The rollback of crypto-related lawsuits has created a more favorable environment for innovative offerings, enabling players like Kraken to position themselves as leaders in the tokenized equities space. In light of these developments, Kraken remains privately held, distinguishing itself from other exchanges such as Coinbase, which went public. The exchange’s venture into tokenized securities marks a pivotal moment in its response to both competitive pressures and regulatory landscapes. However, it is crucial to note that this market is still nascent and fraught with uncertainties, especially as it navigates existing rules and potential backlash from regulatory authorities, which previously stifled similar initiatives like the one attempted by Binance in 2021.