On June 30, Kraken exchange announced that xStocks are now live on its platform. Sixty US stocks are tokenized and tradable 24/5. This includes companies like Apple, Tesla, and Nvidia. Tokenized stocks are not available to US residents or persons. The offering allows investors outside the US to access these assets on-chain. This move brings traditional Wall Street equities onto blockchain technology.
What Are Tokenized Stocks on the Solana Blockchain?
xStocks are tokenized versions of real stocks and ETFs. Each token is backed one-to-one by the underlying stock. These tokens are issued as SPL tokens on the Solana blockchain. Unlike traditional stocks, xStocks don’t offer voting rights. Dividends are automatically reinvested into more tokens instead of cash. This provides price exposure without full shareholder benefits. Trading xStocks allows 24/5 market access beyond regular hours. Weekend trading is planned, but not available yet. Users can withdraw xStocks to crypto wallets for 24/7 on-chain trading. The minimum investment starts as low as one US dollar. This fractional ownership makes investing accessible to smaller investors. There are no trading fees when buying with USD or USDG.
Partnership and Regional Access: Kraken, Backed, and Solana Collaboration
Kraken partnered with Backed and the Solana Foundation to launch xStocks. Backed issues of these tokenized US equities on the Solana blockchain. Solana was chosen for its fast and low-cost transaction capability. The collaboration aims to improve global access to US equities. It targets non-US retail clients in selected countries. This creates a new way to invest using blockchain technology. xStocks are not available in the US, Canada, UK, EU, or Australia. Kraken provides a list of countries eligible to access xStocks. Regulatory and geo-restrictions limit where tokenized stocks can be traded. Non-US investors gain new exposure to American companies through this offering. This careful rollout complies with financial regulations in various regions.
Kraken’s Traditional Stock Offerings and the Addition of Tokenized Stocks
Kraken already offers more than 11,000 US-listed stocks and ETFs to US clients. Tokenized stocks add blockchain features on top of traditional stock offerings. This hybrid approach combines crypto infrastructure with familiar financial products. It opens new opportunities for investing in US equities globally. The tokenized stocks project signals growing integration of finance and blockchain.
Future Plans Include Expanding Tokenized Stocks Across Multiple Blockchains
Kraken and Backed plan to expand the tokenized stocks project to other blockchains soon. They aim to increase market access and accelerate innovation worldwide. Bringing US equities on-chain enables new investment possibilities at any time. This development reflects broader trends of decentralizing traditional finance systems. The partnership is an important step toward global, 24/7 financial markets.
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