Kraken Launches xStocks: Tokenized U.S. Stocks on Solana

Tokenized equity: Yesterday, Kraken announced it will launch tokenized versions of more than 50 U.S. stocks and ETFs — including Apple, Tesla and Nvidia — in partnership with Backed Finance. Branded xStocks, the tokens will settle on Solana and be offered to clients in Europe, Latin America, Africa and Asia; U.S. residents are excluded.

The details:

• 1:1 backing: Each xStock token is fully backed by a real share of the underlying security, held with regulated custodians.
• Redeemable: Tokens can be exchanged for the cash value of the underlying security at any time, keeping prices in line with traditional markets
• 24/7 trading: Like crypto, tokenized stocks can be traded around the clock — even when traditional equity markets are closed.

Open finance: Issued as SPL tokens, xStocks can leave Kraken, sit in self-custody wallets and flow into DeFi, where they may serve as collateral or trade on DEXs — turning traditional equities into composable onchain building blocks beyond the limits of traditional brokerage accounts.

• “You want to take your capital outside your border anywhere you want and do something with it. It doesn’t have to happen on our platform. It can happen on Coinbase, Binance or any DEX. It should be available to everyone.” said Kraken Co-CEO Arjun Sethi.

Backed by Backed: The infrastructure behind xStocks comes from Backed Finance, a Swiss-based tokenization firm with years of experience in real-world asset tokenization. Each token is transparently backed 1:1, with onchain attestations provided via Chainlink’s proof-of-reserve protocol.

All-in-one platform: xStocks are the latest addition to Kraken’s broader push beyond crypto. One month ago, the exchange began rolling out stock trading for over 11,000 U.S.-listed equities in select states. Kraken also announced the acquisition of NinjaTrader, a U.S.-based retail futures brokerage.

Next steps: Kraken says the first xStocks will go live within weeks, with a broader asset roster and additional jurisdictions to follow.

The race for tokenized equities is well underway. In just the last couple of weeks, Kraken announced xStocks, Superstate unveiled Opening Bell, and Robinhood urged the SEC to establish a framework for onchain securities. Add Coinbase’s public push — and there’s hardly a major exchange left that hasn’t signaled plans to merge equity and crypto infrastructure.

What makes tokenized stocks compelling isn’t just global access. It’s a fundamentally better user experience with 24/7 trading, instant settlement, and fractional shares. Another big unlock is composability. Once integrated into DeFi, tokenized equities become collateral, flow into lending markets, and unlock utility beyond simple price exposure.

That’s why every major exchange is building its own Layer 2 — not just to host assets, but to capture downstream value in onchain finance and deliver more powerful products to their users. All the more surprising, then, that Kraken chose to launch xStocks on Solana first rather than its own Layer 2, Ink (which the company has hinted is still on the way, though).

Everyone’s known tokenized equities were coming — but until recently, no one wanted to move first. For years, the risk wasn’t technical or financial, it was regulatory. Even fully licensed players stayed on the sidelines, knowing the SEC’s stance made it easy to get caught in the crossfire.

That’s now changed. Not because new laws were passed, but because the SEC flipped its posture. Instead of lawsuits, we now get roundtables. Instead of silence, calls for sandboxes. Commissioner Peirce says outright: tokenization won’t scale without regulatory clarity. That clarity still isn’t here — but the message is different now: as long as you’re not committing fraud, we’re not coming after you.