Kraken is gearing up to change how global investors access U.S. stocksby putting them on the blockchain. The U.S.-based crypto exchange will soon launch “xStocks,” tokenized versions of over 50 popular equities and ETFs, including Tesla (NASDAQ:TSLA), Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), and SPDR S&P 500 (SPY). These tokens will trade 24/7 on the Solana blockchain and initially be available to users in Europe, Latin America, Asia, and Africaexcluding the U.S. Kraken says this model could streamline access for investors who’ve long dealt with clunky settlement systems and high fees through local brokerages.
Each xStock will be backed 1:1 by the underlying asset, held and managed by Kraken’s partner, Backed Finance. The tokens are redeemable for cash value, and the company hopes this will help keep pricing aligned with real-time market movements. Kraken co-CEO Arjun Sethi noted that traditional cross-border investing is still burdened by friction, and this could be a more cost-effective workaround. If it works, tokenized stocks may not just give international investors easier accessthey might also open up new use cases like pledging tokenized Tesla shares as collateral for DeFi strategies.
It’s not the first time someone’s tried this. Binance launched a similar product in 2021, only to shut it down after regulatory pushback. Kraken is taking a different route, actively engaging with regulators across various countries. The timing also aligns with broader conversations in Washington around crypto and tokenization. With firms like BlackRock and Robinhood now backing similar ideas, Kraken’s launch could be more than a new productit might be a preview of where traditional finance is headed.
This article first appeared on GuruFocus.
