Kraken Expands 24/7 Tokenized Stock Trading via Solana

By: Eliza Bennet

Kraken, a prominent cryptocurrency exchange, has announced a groundbreaking development set to redefine the landscape of stock trading. The company is launching "xStocks," a platform that will allow users in selected countries outside the United States to engage in 24/7 trading of tokenized American stocks and ETFs. This innovative product is being developed in partnership with Backed and will facilitate tokenization of popular US-listed assets as SPL tokens, operating over the robust Solana (SOL) network.

With names such as Apple, Tesla, and Nvidia among the tokenized offerings, Kraken is geared towards expanding this selection over time. The introduction of xStocks comes in the wake of Kraken's February acquisition of NinjaTrader, a move that underscores its strategic expansion into stock trading. Moreover, it builds upon Kraken’s recent debut of conventional equities trading services for US-based clients. The exchange foresees extending these services to clients in the UK, Europe, and Australia, with xStocks harnessing the unique advantages of blockchain technology to provide broader market access.

The xStocks platform aims to address various shortcomings associated with conventional equity markets, such as limited trading hours and high transactional costs. Mark Greenberg, Kraken’s Global Head of Consumer, emphasized that this initiative represents the future of investing by providing faster, cheaper, and more inclusive access to US equities. Additionally, the tokenized nature of the assets will enable them to be utilized in decentralized applications onchain, offering possibilities that are unavailable through traditional brokerage systems.

This foray into tokenized stock trading is part of a larger trend capitalizing on the rising interest in tokenized real-world assets. It reflects an industry-wide shift towards open financial infrastructure that leverages digital rails for enhanced efficiency. Although a specific launch date for xStocks has not been announced, Kraken is committed to expanding the list of supported jurisdictions and tokenized assets progressively, thereby democratizing access to US markets for its global clientele. The exploration of other blockchain platforms for future tokenized securities further indicates Kraken's intent to stay at the forefront of this financial evolution.