Cryptocurrency exchange Kraken is venturing deeper into real-world asset tokenization with the launch of tokenized U.S. stocks for international clients. Branded as “xStocks,” these digital assets will be issued on the Solana blockchain through a partnership with Swiss-based firm Backed, which will hold the actual shares to guarantee 1:1 collateralization.
Kraken’s offering—available only to users outside the U.S.—marks a significant step in bridging traditional finance with blockchain-based infrastructure. The choice of Solana was driven by its high speed, low fees, and strong developer base, according to Kraken.
“The whole point of crypto is transparency,” said Kraken Co-CEO Arjun Sethi at the Solana Accelerate event on May 22.
“It’s decentralized, open-source, and built for rapid innovation.”
With this move, Kraken is positioning itself to challenge both crypto-native competitors like Coinbase and fintech brokerages like Robinhood in the race to modernize equity access through blockchain.
Kraken Expands Stock Access While Avoiding Past Pitfalls
Kraken’s foray into tokenized equities mirrors its recent quiet expansion of stock and ETF trading for select U.S. clients. Since mid-April, residents in states like New Jersey, Alabama, and Connecticut have gained access to traditional equities via the Kraken platform.
This dual-market approach—stock trading for U.S. residents and tokenized stocks for global clients—signals Kraken’s ambition to become a hybrid financial platform.
Unlike Binance, which abandoned its tokenized stock products in 2021 due to regulatory blowback, Kraken appears to be prioritizing compliance. The company is executing its rollout on a jurisdiction-by-jurisdiction basis, combining regulatory caution with modular service architecture.
“We’re building microservices to scale both traditional and crypto-native tools,” Sethi added.
Real-World Asset Tokenization Gains Momentum
Kraken’s new xStocks launch reflects a broader crypto trend: the rapid rise of real-world asset (RWA) tokenization. According to data from May 20, the RWA sector has grown 42.8% year-to-date, with market cap rising from $15.9 billion to $22.7 billion.
While most of that growth has come from tokenized Treasurys and private credit, tokenized stocks remain underdeveloped—representing just $373.4 million in value. Kraken’s entry could significantly boost this niche and accelerate equity access in emerging markets.
Other firms are moving in the same direction. Robinhood recently disclosed plans to build blockchain rails for tokenized stocks in Europe, and several DeFi platforms are exploring similar offerings.
Tokenization’s appeal lies in lower costs, faster settlements, and broader access—enabling users to own fractional shares of real assets without intermediaries.
Quick Facts
- Kraken will offer tokenized U.S. stocks to non-U.S. users via Solana.
- “xStocks” are backed 1:1 by equities held by Backed.
- The rollout excludes U.S. residents due to regulatory restrictions.
- Tokenized stock market cap is just $373M but growing fast.
- Kraken joins Robinhood in expanding blockchain-based stock access.
