Kraken, a prominent player in the cryptocurrency exchange arena, has announced its plan to list tokenized shares of major U.S. companies, including Nvidia, Apple, and Tesla, along with over 50 other stocks and ETFs. This development, revealed by the Wall Street Journal, marks a significant expansion in Kraken’s offerings as it aims to provide 24/7 trading access to these assets globally.
Expanding Horizons with xStocks
Dubbed “xStocks,” these tokenized shares will be deployed on the Solana blockchain, allowing investors worldwide to trade at any hour of the day, bypassing traditional market constraints. Among the ETFs up for grabs are heavyweights like the SPDR S&P 500 ETF (SPY) and SPDR Gold Shares (GLD). These tokens are backed by actual shares held by Backed Finance, ensuring that investors can redeem them at a 1:1 cash value, providing a tangible link to the underlying assets.
In April, Kraken began its foray into this space by launching access to over 11,000 U.S.-listed stocks and ETFs across 10 states, offered through its subsidiary, Kraken Securities. The latest announcement propels Kraken into direct competition with platforms like Robinhood, as it extends its reach beyond the U.S., targeting markets in Europe, Latin America, Africa, and Asia. This follows a pattern of institutional adoption, which we detailed in our analysis of corporate treasury investments.
Navigating Regulatory Waters
While the venture into tokenized stocks is not without precedent—Binance attempted a similar launch in 2021 before retreating due to regulatory hurdles—Kraken appears to be treading carefully. A Kraken spokesperson mentioned to the Wall Street Journal that the exchange is “actively working with various regulators” to ensure compliance across different jurisdictions. This cautious approach highlights the complexities of navigating the regulatory landscape, which remains a significant challenge for the burgeoning tokenization market. As explored in our recent coverage of Tether’s tokenization ambition, the industry is seeing a surge in interest from major players.
Tokenization, the process of converting real-world assets into blockchain tokens, has gained traction in the crypto world. Industry leaders like Ondo Finance, BlackRock, and Franklin Templeton have been at the forefront, propelling the tokenization market to a robust $65 billion market cap as of May. Kraken’s move could further accelerate this trend, offering a glimpse into the future of asset trading.
The Road Ahead
Kraken’s strategic expansion into tokenized shares signals a broader shift in how financial markets might operate, opening doors to a more inclusive and accessible trading environment. However, it also raises questions about the sustainability of this trend. Will traditional investors embrace this new model, or will they remain wary of the risks associated with digital assets? And how will regulators respond to the increasing overlap between traditional finance and crypto?
As Kraken embarks on this ambitious journey, the crypto community—and indeed, the world—watches closely. The outcome of this venture could very well shape the future of financial trading, redefining access, liquidity, and market dynamics. While the road is fraught with challenges, it is also ripe with opportunities for those willing to navigate its complexities. The coming months will be pivotal in determining whether Kraken’s gamble pays off, potentially setting a new standard for the industry.
Source
This article is based on: Kraken to List Tokenized Version of Nvidia, Apple, Tesla Shares
Further Reading
Deepen your understanding with these related articles:
- MultiBank, MAG, Mavryk ink world’s largest $3B RWA tokenization deal
- Kraken’s Quarterly Revenue Jumps 19% to $472M in Q1, Trading Volume Rises by 29%
- Robinhood beats Q1 estimates despite revenue, crypto trading dip
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
