Great news – Kraken is bringing tokenized securities to Europe.
The US-based crypto exchange has officially launched xStocks, Backed’s tokenized securities, for eligible European investors. This comes after it first rolled out tokenized securities in June, marking a major step in bringing blockchain technology closer to traditional markets.
European users can now trade tokenized certificates representing more than 50 US stocks and ETFs, with 24/5 access to extended trading hours.
These xStocks are blockchain-based versions of real-world stocks or ETFs. Their value tracks the actual stock, and they can be traded or held in a crypto wallet like any cryptocurrency.
The platform allows investors to skip traditional brokers, move their assets across platforms with ease, and even hold their investments in self-custody. These digital assets can also be integrated into DeFi protocols, opening up new opportunities in on-chain finance.
Kraken first launched xStocks as SPL tokens on the Solana blockchain and now plans to introduce support for Ethereum-based BEP-20 tokens. The exchange has also signaled plans to expand xStocks to additional blockchains like Ink.
Mark Greenberg, Kraken’s global head of consumer said that the goal is to make it easier for European investors to access US stock markets, which has traditionally been complicated.
Arjun Sethi, co-CEO of Kraken, emphasized that tokenized equities are becoming a foundational element of the next financial system.
He notes that financial markets are shifting rapidly, and stocks, bonds, currencies, and treasuries will eventually move on public blockchains.
Tokenized securities are gaining traction in Europe, with Gemini and Robinhood already offering similar products. Nasdaq also recently filed with the SEC to enter the sector.
However, regulators are expressing caution. The European Securities and Markets Authority (ESMA) has warned that some platforms offering tokenized US equities may mislead investors by providing only digital rights rather than true ownership.
Without full ownership, investors could lose benefits such as voting rights and dividend claims. ESMA also stressed that most tokenized assets remain relatively illiquid, which adds another layer of risk.
The launch of xStocks is just one part of Kraken’s wider growth plan.
In April 2025, the exchange introduced commission-free trading for over 11,000 U.S.-listed stocks and ETFs, to bridge the gap between traditional finance and digital assets.
In July, it launched U.S.-Regulated Derivatives. This followed its $1.5 billion acquisition of CFTC-licensed NinjaTrader, part of a broader push to create a unified marketplace across asset classes.
Kraken is reportedly planning to raise $500 million at a $15 billion valuation and aims to pursue a public listing as early as Q1 2026.
This could set the stage for a new era of global investing. Stay tuned to Coinpedia for more updates!
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