Kraken to Offer Tokenized U.S. Equities on Solana for International Clients

Summary

• New Investment Avenue: Cryptocurrency exchange Kraken, in partnership with asset issuer Backed, is launching “xStocks”—tokenized versions of U.S. stocks and ETFs—aimed at traders in select non-U.S. markets.

• Solana Blockchain Integration: These xStocks will be issued as SPL tokens on the Solana blockchain, chosen for its performance, low latency, and robust ecosystem, and will be accessible through Kraken’s app.

• Enhanced Accessibility and Utility: The initiative seeks to overcome traditional barriers to U.S. equity access, offering instant, borderless exposure and allowing assets to be traded on Kraken or on-chain, including use as collateral in decentralized finance.

• Future Expansion Plans: Kraken intends to progressively increase the variety of tokenized assets offered and expand the geographical availability of its xStocks service to additional jurisdictions.

Expanding Investment Horizons

A prominent San Francisco-based cryptocurrency exchange, Kraken, is set to broaden its offerings for international clients by introducing digital representations of widely-held American stocks and exchange-traded funds (ETFs).

This initiative will leverage the Solana blockchain network to facilitate these novel investment instruments in designated markets outside the United States.

Collaboration and Blockchain Innovation

In an official communication, Kraken detailed its collaboration with Backed, a specialized issuer of tokenized securities, to introduce a product line branded as xStocks.

This xStocks range, conceived by Backed, employs blockchain technology to furnish tokenized equivalents of equities listed on U.S. exchanges.

Addressing Traditional Market Limitations

Mark Greenberg, Kraken’s Global Head of Consumer, articulated the rationale behind this move, stating, “Traditional pathways to U.S. equity markets are often characterized by inefficiency, high costs, and significant barriers to entry.

Through xStocks, we are harnessing the power of blockchain to offer a superior alternative: transparent, immediate, widely available, and geographically unconstrained exposure to some of the most recognized corporations in America.

This represents the trajectory of future investment.”

Technical Framework and User Access

Kraken has specified that these xStocks will be minted as SPL tokens, the established token standard native to the Solana blockchain.

Eligible customers will be able to access these assets directly through the Kraken application.

Enhanced Trading and Collateralization Features

A key advantage highlighted is the dual trading capability of these xStocks assets.

They can be exchanged on Kraken’s proprietary platform and also transacted directly on the blockchain via compatible third-party wallet services.

This on-chain functionality further allows users to employ their xStocks as collateral, a flexibility not commonly found within conventional financial frameworks.

Solana: The Chosen Launch Platform

The selection of the Solana blockchain as the inaugural platform for xStocks was attributed to its high throughput capabilities, rapid transaction processing, and its flourishing, extensive international community.

Future Growth and Expansion

Looking ahead, the exchange has indicated its intentions to increase the variety of tokenized assets available progressively and extend the xStocks service’s geographical availability to additional jurisdictions.

Also Read: Kraken generates $1.5 billion in revenue amid an increase in trading volume in the United States

Kraken, a US-based cryptocurrency exchange, saw a 128% year-over-year increase in revenue in 2024, reaching $1.5 billion. The platform generated $380 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2024, resulting from $665 billion in trading volume. With assets totaling $42.8 billion, Kraken was the fifth-largest centralized exchange and managed 2.5 million funded accounts. The platform’s success is attributed to its long-term growth strategy, which has allowed it to dominate the stable-to-fiat on-ramp sector, managing over 40% of global stable-fiat volume. Kraken also emphasizes its commitment to seamless execution, with a 99.9% platform availability and sub-2ms round-trip…[Read More]

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