Kraken to Offer Tokenized Stock Trading for Non-US Users via Solana and Backed

Crypto exchange Kraken is preparing to launch tokenized stock trading for non-US users, a move aimed at expanding retail and institutional access to US equities in digital form. The upcoming offering will include tokenized shares of major companies like Apple, Tesla, Meta, and Nvidia, among others.

Developed in collaboration with blockchain firm Backed, the new product, branded as “xStocks,” will be available to users across Europe, Latin America, Africa, and Asia in the coming weeks.

Kraken and Backed to Offer 24/7 Access to Tokenized Stocks via Solana and DeFi

According to Backed, xStocks will integrate with Kraken and Solana-based decentralized finance (DeFi) protocols, enabling users to trade tokenized stocks and exchange-traded funds (ETFs) around the clock. The service aims to provide “seamless blockchain-based access” to financial markets traditionally restricted by geographic and regulatory hurdles.

Backed’s blog post explained that the initiative would offer real-world equities as onchain tokens, allowing holders to use them across DeFi ecosystems for activities such as collateralized lending and borrowing, similar to how other crypto assets are utilized.

The tokenized stock market is increasingly seen by crypto firms as the next frontier in digital asset innovation. Kraken’s co-CEO Arjun Sethi has previously stated that tokenized equities could surpass the stablecoin sector in scale.

With Tether currently commanding a supply of roughly $240 billion, Sethi argued that the long-term potential of tokenized stocks and the derivative markets built around them could be significantly larger.

“One tokenized equity is going to be equivalent or larger than Tether,” he said, pointing to a future where hundreds or thousands of tokenized securities are actively traded with associated futures and options markets.

Decentralized Equity Access and a Shift Toward Global Financial Inclusion

Beyond Kraken, other blockchain-native players like Plume Network and WhiteRock are also entering the space, recognizing growing global interest in accessing US equities in a decentralized format. Backed’s integration of xStocks with Solana enables users to trade with the benefits of the blockchain.

Transactions can be executed using stablecoins, fiat, or other cryptocurrencies, with zero trading fees on Kraken. This system allows users to maintain custody of their tokenized shares and use them across compatible DeFi protocols.

The announcement reveals that the use cases for tokenized stocks go beyond basic trading. For instance, an individual can lend their tokenized Apple stock through a lending protocol to generate yield or use it as collateral for loans without liquidating their position.

Such flexibility, coupled with continuous access to markets, could significantly alter how individuals and institutions interact with global equities. The move also addresses a key challenge for investors outside the US who face regulatory and logistical hurdles in accessing American financial products.

Featured image created with DALL-E, Chart from TradingView