Crypto exchange Kraken has launched xStocks, a new product that allows European investors to trade tokenized versions of U.S. stocks and ETFs. The offering aims to bridge traditional finance with blockchain technology, providing easier access to popular securities.
The xStocks product, available through Kraken’s PEDSL-CY entity, is exclusively for EU-based clients who have passed an “appropriateness assessment” or are qualified as professional investors. The tokens are not registered under the U.S. Securities Act and cannot be sold to or held by U.S. persons.
According to Kraken, xStocks are tokenized certificates that mirror the market prices of real-world U.S. stocks and ETFs. Each token is backed 1:1 by the underlying security and is issued on-chain as either an SPL or BNB token. However, these tokens do not confer shareholder rights, such as voting or dividend eligibility. Instead, they provide holders with price exposure to the assets.
The tokens are issued by Backed Assets (JE) Limited, a company based in Jersey. Kraken has initially made 60 assets available, including 55 stocks and five ETFs, featuring well-known companies like Tesla, Apple, and GameStop.
Kraken is offering several features designed to enhance accessibility and trading flexibility:
Extended Trading Hours: xStocks can be traded 24 hours a day, five days a week, extending beyond traditional market hours.
Fractional Investment: The minimum investment amount is as low as €1, allowing a wider range of retail investors to buy into high-value stocks.
Self-Custody: Users have the option to withdraw their xStocks to a compatible on-chain wallet, giving them direct control over their assets.
The launch of xStocks is part of a growing trend of real-world asset (RWA) tokenization, which seeks to modernize financial markets by combining the stability of traditional assets with the transparency and efficiency of blockchain. Kraken has stated that it plans to expand support for more blockchain standards in the future.
