Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at how the cryptocurrency exchange Kraken have debuted more than 50 tokenized United States stocks which can be traded 24 hours a day, but they have excluded Americans from making use of this service.
Kraken Debuts 50+ Tokenized U.S. Stocks for 24/7 Trading
The cryptocurrency exchange Kraken have began testing how digital asset platforms can reshape access, liquidity, and regulatory expectations in global capital markets. The tokenized versions of more than 50 United States stocks and exchange-traded funds (ETFs) will intitially only be accessible by non-American customers. The rollout will began by including Apple, Tesla, Nvidia, and it will target the European, Latin American, African, and Asian markets.
The news came via a Wall Street Journal report published on May 22. Kraken have noted that the digital assets will be known as 'xStocks' and they will be issued on the Solana blockchain. The assets will be backed by underlying shares held by Backed Finance. Each token will be redeemable for the cash value of the corresponding security, a structure intended to maintain price alignment with traditional markets. Major companies such as Apple, Tesla, Nvidia, and ETFs such as SPY and GLD will see their shares included as part of the service. What makes this so unique is that the tokens will trade around the clock, including outside U.S. market hours.
The CEO of Kraken, Arjun Sethi, stated:
“There’s a lot of friction. It typically involves very high fees and slow settlement times.”
Kraken did not immediately respond to a request for comment but they already have a traditional stock trading platform for US customers that offers more than 11,000 stocks and ETFs via the conventional brokerage model. The xStocks will be available for customers outside the US and they will allow the consumers to hold and transfer xStocks similar to other digital assets. Kraken also noted that future functionality may include wallet transfers or use as collateral.
Interestingly back in 2021 Binance made an attempt to tokenize equities but the venture was short-lived as they ended up pulling the plug after regulators pushed back. In relation to Kraken not making the xStocks available in the US, the company noted that are engaging with regulators in jurisdictions where the tokens will be offered. Given that U.S. lawmakers and the Trump administration have shown a more facourable attitude towards crypto then the potential remains for these xStocks to be released within the United States in the foreseeable future.
Kraken also reported $472 million in revenue for the first quarter of 2025 as part of their latest financial update. Adjusted EBITDA reached $187 million, a 1% increase from the same period last year despite a 7% dip in revenue compared to Q4 2024. The company also noted a 29% year-over-year increase in trading volume and a 26% rise in funded accounts.
Have a great day.
Peace. CryptoGod-1.
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