Kraken To Launch 24/7 Tokenized Stock Trading For Global Users Via Solana

by Murtuza J Merchant Benzinga Staff Writer

Zinger Key Points

Kraken says it's proactively working with regulators globally to avoid legal pitfalls that doomed similar offerings on Binance.
Asset tokenization has gained mainstream momentum amid regulatory discussions and corporate backing from firms like BlackRock and Robinhood.
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Cryptocurrency exchange Kraken is preparing to roll out tokenized versions of major U.S. stocks like Apple AAPL, Tesla, and Nvidia NVDA for users outside the United States.

What Happened: The offering will allow non-U.S. investors to buy and trade digital tokens that mirror the value of U.S. equities, operating round the clock, even when traditional markets are closed, according to The Wall Street Journal.

The initiative, expected to launch within weeks, will be available to customers across Europe, Latin America, Asia, and Africa. U.S.-based users, however, will not have access to the tokenized stock trading feature.

Branded as "xStocks," these tokens will represent more than 50 equities and exchange-traded funds (ETFs), including the SPDR S&P 500 ETF (SPY) and SPDR Gold Shares.

Kraken plans to issue these tokens on the Solana SOL/USD, which supports fast and low-cost transaction processing.

Each xStock will be backed 1:1 by the underlying stock or ETF, held and managed by Kraken's partner, Backed Finance.

The tokens will be redeemable for the equivalent cash value of the underlying securities, maintaining parity with market prices.

Arjun Sethi, Kraken's co-CEO, said the move aims to reduce barriers for global investors.

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"Accessing U.S. stocks from abroad often means high fees and long settlement times," Sethi said. "There's a lot of friction."

xStocks are expected to be transferable beyond Kraken's platform, with users potentially able to store them in private crypto wallets or use them as collateral in decentralized finance (DeFi) applications.

Why It Matters: This isn't the first time tokenized stocks have been introduced.

Binance briefly offered tokenized equity products in 2021 before regulatory scrutiny forced a shutdown.

Kraken says it is taking a different approach, working closely with regulators in each jurisdiction to stay compliant.

The move comes as industry interest in asset tokenization rises.

The SEC recently hosted a roundtable on the subject, and major firms like BlackRock BLK and Robinhood HOOD have expressed support for blockchain-based securities trading.