Kraken has listed xStocks, tokenized equities issued by Backed, offering over 60 U.S. stocks and ETFs, including Nvidia, Apple, Tesla, and more.
Editor’s note: A previous version of this article inaccurately stated that Kraken launched xStocks. In fact, xStocks is issued by Backed, not Kraken. Kraken has listed xStocks for trading. We regret the error and have updated the article accordingly.
Crypto platforms are increasingly integrating TradFi features. On Monday, June 30, crypto exchange Kraken began supporting trades for xStocks, enabling users to trade tokenized securities. Traders are now able to gain exposure to several major stocks, including Nvidia, Apple, Tesla, GameStop, and more.
Through xStocks, Kraken users can access tokenized versions of 55 U.S. stocks and 5 ETFs. The tokens are issued by Backed Assets Limited and deployed on the Solana blockchain as SPL tokens. Traders can withdraw their xStocks tokens to their wallets, making them self-custodial.
Still, the platform comes with several limitations due to both technical and regulatory reasons. Currently, the stocks will be tradable during the workday, even after the market closes. According to Kraken, weekend trading is still in development.
Due to regulatory requirements, the xStocks platform is only available in certain locations. Notably, customers from the U.S., Canada, the U.K., the EU, or Australia cannot use the platform at the time of the announcement.
xStocks don’t confer dividends
Probably the biggest limitation is that xStock tokens don’t confer important shareholder rights. For one, traders can’t vote in shareholder meetings. An even bigger limitation is the lack of access to dividends, which are an important part of returns for some stocks.
For this reason, xStocks are best used for high-growth stocks like Tesla and Nvidia. These stocks typically don’t pay dividends anyway, as they reinvest profits back into operations. Notably, most stocks on the xStocks platform fall into that category.
Tokenized stocks are part of a growing trend of putting real-world assets on the chain. The total value of RWAs, including stocks, real estate, debt, and other assets, hit $50 billion by March of 2025. What is more, experts project this asset class to hit $2 trillion by 2030.
