Kraken brings tokenized ETFs and stocks to Europe
Kraken launched xStocks for European customers, allowing them to trade tokenized U.S. stocks and ETFs around the clock on weekdays.
The platform offers access to 55 tokenized stocks from U.S. companies and 5 index funds. Each token is fully backed by underlying assets at a 1:1 ratio. The selection includes many well-known companies such as Apple, NVIDIA and Tesla, plus ETFs like SPY and QQQ.
Kraken partnered with Swiss tokenization company Backed to launch the product. The platform is currently live on Solana; Ethereum (ERC-20) support has been announced and is being rolled out. Kraken plans to add more blockchain integrations in the future to improve token portability between different wallets and protocols.
Users can buy, sell and withdraw these tokens to compatible wallets for self-custody. Token holders receive dividends, but not through regular cash payments. Instead, their token balance increases automatically. These tokens work differently from traditional stocks, as they don't give shareholders voting rights or other ownership benefits that come with stock ownership.
Kraken co-CEO Arjun Sethi described xStocks as part of the company's plan to bring traditional assets onto blockchain infrastructure and integrate public markets with decentralized systems. Backed co-founder Roberto Klein noted that expanding to Ethereum connects tokenized equities to established decentralized finance protocols and liquidity pools.
The service remains unavailable in several jurisdictions, including the United States, United Kingdom, Canada and Australia, due to regulatory restrictions. Kraken operates its European business under permissions from the Central Bank of Ireland following the EU's Markets in Crypto-Assets regulation.
Meanwhile, U.S. lawmakers continue debating digital asset regulation. Senate Democrats recently published a framework for market structure legislation that addresses tokenized assets and trading platforms, though regulatory clarity remains pending.
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