In a significant advancement for tokenized equities, xStocks is set to expand its reach through a new partnership with Kraken, leveraging the Ethereum blockchain. This development is expected to open new opportunities for both tokenized stocks and exchange-traded funds (ETFs) by integrating into the world’s most widely adopted smart contract network.
Ethereum has been recognized as an ideal platform for this expansion due to its vibrant developer community, deep liquidity, and extensive global user base. By facilitating the integration of xStocks on Ethereum, Kraken aims to provide millions of Ethereum users with access to the industry standards for tokenized equities liquidity. In the coming weeks, eligible clients of Kraken will be able to seamlessly deposit and withdraw xStocks directly on the Ethereum blockchain, enhancing flexibility for investors looking to transfer assets between the Kraken platform and their self-custodial wallets.
As part of this initiative, Backed will be issuing xStocks as ERC-20 tokens, ensuring a full 1:1 collateralization for each tokenized equity listed on Kraken’s platform. This move is anticipated to attract more integrations across decentralized finance (DeFi) protocols, cryptocurrency wallets, and decentralized applications (dApps), effectively bringing tokenized equities into one of the largest innovation ecosystems in Web3.
Arjun Sethi, co-CEO of Kraken, highlighted the significance of xStocks in their vision to bring traditional assets onto trust-minimized infrastructure, integrating public markets into the foundational layers of the internet. He emphasized that this multi-chain strategy is strategic, aimed at making tokenized equities accessible across diverse ecosystems and allowing for fluid movement of assets between wallets and protocols.
Roberto Klein, co-founder of Backed, noted that the expansion of xStocks onto Ethereum Mainnet allows it to access a vast pool of on-chain liquidity and to connect with well-established DeFi protocols. This advancement is aligned with the design of xStocks, which is intended for composability within the evolving DeFi landscape.
The journey forward for xStocks represents a critical step toward enhancing traditional equities’ on-chain presence and facilitating broader access to capital markets globally. After initially launching on the Solana blockchain and with plans for further integration with both BNB Chain and the TRON network, xStocks has quickly cemented its position as a leading standard for tokenized equities.
Currently, xStocks are available to Kraken clients in over 140 countries, as well as on various centralized and decentralized exchanges. Since its launch in late June, xStocks has remarkably surpassed $3.5 billion in combined trading volume, indicating a robust market demand for this asset class.
The multi-chain strategy that underpins xStocks is based on the principle that tokenized equities should be open, permissionless, and interoperable across different ecosystems. This approach aims to give users the flexibility to access markets on platforms and applications they trust, embodying a commitment to expanding access to tokenized equities for users, builders, and markets worldwide.
For investors interested in participating in this new frontier of tokenized equities, it is essential to consider specific disclosures and understand the associated risks. xStocks are issued by Backed Assets (JE) Limited and offered to eligible Kraken customers through Payward Digital Solutions Ltd., which is licensed to conduct digital asset business. Potential investors are encouraged to conduct their due diligence or seek professional advice before engaging in any investment.
With these developments, xStocks is on a promising trajectory, redefining how traditional equity markets interact with the blockchain space and paving the way for innovative financial solutions in the digital age.
