In a significant move to enhance the integration of tokenized stocks and exchange-traded funds (ETFs), Kraken recently announced its plans to extend support for xStocks to the Ethereum blockchain. As detailed in a blog post released on September 2, this initiative is aimed at harnessing Ethereum’s robust smart contract framework, which boasts a vibrant developer community, deep liquidity, and a global user base.
The post emphasizes that by advancing their xStocks offering to Ethereum, Kraken is positioning itself to facilitate the next phase of tokenized equities. This development is expected to empower millions of Ethereum users and numerous active applications with a reliable source of liquidity in tokenized equities.
Starting in the coming weeks, eligible clients of Kraken will have the capability to deposit and withdraw xStocks directly on the Ethereum network. This enhancement is anticipated to provide investors with increased flexibility and choice, allowing for easy asset transfers between Kraken’s platform and self-custodial wallets, thus promoting on-chain activities.
This move follows Kraken’s earlier announcement in late June regarding the launch of tokenized U.S. stocks and ETFs on its platform, aimed specifically at eligible non-U.S. clients through the utilization of xStocks. Arjun Sethi, Kraken’s co-CEO, articulated in the blog post that xStocks plays a pivotal role in the company’s ambition to integrate traditional assets onto a “trust-minimized infrastructure,” ultimately merging public markets with the foundational layer of the internet.
Sethi further explained that Kraken’s multi-chain strategy is intentionally designed to make tokenized equities accessible across different ecosystems. This approach allows for portability between wallets and protocols, as well as compatibility with existing trusted applications. Highlighting Ethereum’s prominence, he stated that it stands as a central hub for smart contract innovation, decentralized finance, and on-chain liquidity, making it a logical next step for the launch of xStocks.
The exploration of tokenized stocks is gaining traction in the financial landscape, a topic previously examined by PYMNTS following Kraken’s initial launch of xStocks, alongside Robinhood’s announcement regarding tokenized stocks. The broader movement appears interconnected, as various initiatives—including JPMorgan Chase’s development of a service targeting tokenization of carbon credits—indicate a significant shift toward transitioning traditional financial services onto the blockchain.
