Kraken plans to launch tokenized trading of US stocks, allowing non-US users to buy and sell major stocks like Tesla 24 hours a day
The American cryptocurrency exchange Kraken announced that it will launch tokenized versions of over 50 U.S. stocks and ETFs in the coming weeks, targeting non-U.S. customers. The tokens will be based on the Solana blockchain, supporting 24-hour trading, aimed at lowering the barriers for global investors to enter the U.S. stock market. Kraken is collaborating with Backed Finance to ensure that the tokens are aligned with the actual stock prices and can be redeemed for cash. This service is not open to U.S. users to avoid regulatory issues, marking the integration of traditional finance and cryptocurrency
According to Zhitong Finance APP, the American cryptocurrency exchange Kraken has announced that it will launch tokenized versions of over 50 U.S. stocks and ETFs for non-U.S. customers in Europe, Latin America, Africa, and Asia in the coming weeks, including well-known companies such as Apple (AAPL.US), Tesla (TSLA.US), and Nvidia (NVDA.US). These tokens, referred to as "xStocks," will operate on the Solana blockchain, supporting 24/7 trading, aimed at providing global investors with a more convenient channel for investing in U.S. stocks.
Kraken is collaborating with fintech company Backed Finance, which will purchase and custody the actual shares and ETF units and issue the corresponding number of tokens. These tokens will be aligned with the prices of their corresponding stocks and can be redeemed for the equivalent cash value.
Kraken co-CEO Arjun Sethi stated, "We are reducing the barriers for global investors to enter the U.S. stock market." He pointed out that overseas investors typically purchase U.S. stocks through local brokers, which often involves high fees and longer settlement times.
It is noteworthy that Kraken's service will not be available to U.S. users to avoid potential regulatory issues. Previously, other cryptocurrency exchanges attempted to launch similar tokenized stock services but were forced to terminate them due to regulatory pressure. Kraken stated that it is actively cooperating with regulatory authorities in various countries to ensure that its xStocks product is launched legally and compliantly in each country.
Kraken's xStocks plan is seen as an important step in the integration of traditional finance and the cryptocurrency sector. By tokenizing traditional stocks, investors can flexibly invest without being restricted by traditional trading hours. Additionally, these tokens can also be transferred to personal digital wallets or used as collateral for decentralized finance (DeFi) strategies, further expanding their application scenarios
