Kraken is shaking up the traditional stock market with its bold leap into tokenized trading. The cryptocurrency exchange announced plans to offer tokenized versions of over 50 U.S. stocks and ETFs on the Solana blockchain, including heavy hitters like Apple, Tesla, and Nvidia. Just don’t tell American investors – they’re not invited to this party.
Traditional stock trading gets a crypto makeover as Kraken launches tokenized shares, but U.S. investors are locked out of the party.
The new xStocks service will enable 24/7 trading for international clients across Europe, Latin America, Africa, and Asia. Each token represents actual shares held by Backed Finance, with a 1:1 redemption guarantee. It’s like having your cake and eating it too, except U.S. regulators won’t let Americans near the dessert table. The platform will eliminate local brokerage fees for international investors seeking access to U.S. equities. The partnership with Backed and Solana Foundation marks a significant milestone in Kraken‘s expansion into tokenized securities.
Kraken chose Solana’s blockchain for its “unmatched performance” and low latency. The exchange is building specialized microservices to handle the technical heavy lifting, while Backed Finance manages the tokenization infrastructure. It’s a match made in crypto heaven – assuming regulators don’t crash the wedding. Unlike traditional ETFs that require authorized participants to maintain price alignment, Kraken’s tokenized stocks aim for direct price matching.
This isn’t the first rodeo for tokenized stocks. Binance tried something similar in 2021, but regulatory concerns shut that party down faster than you can say “SEC investigation.” Kraken claims it’s “actively working with regulators” to keep everything above board. Time will tell if they’ve cracked the compliance code.
The move follows Kraken’s recent venture into commission-free stock trading for U.S. clients, expanding beyond its 300+ crypto token listings. Now they’re taking on traditional brokerages like Robinhood, while simultaneously creating a one-stop shop for stocks, crypto, and stablecoins. Talk about ambitious.
With the tokenization market hitting $65 billion by May 2025, Kraken’s timing couldn’t be better. Co-CEO Arjun Sethi announced the initiative at Solana’s Accelerate event, positioning Kraken as the first major exchange to successfully tokenize prominent U.S. stocks. It’s a clever play – even if Americans are left watching from the sidelines.
