Kraken Aims to Bring Wall Street on Chain with the Launch of xStocks Tokenized U.S. Stock Trading Service
Have you ever wondered why trading US stocks at 2 AM is not possible? Or, if you’re outside the United States, why entering the US stock market remains fraught with challenges and high fees? In today’s rapidly evolving landscape of blockchain and cryptocurrency technology, solutions to these problems seem to be emerging. Kraken is preparing to “tokenize” US stocks, allowing users worldwide to participate in the US market anytime, anywhere.
Kraken Partners with Backed to Launch xStocks: Unlocking US Stock Token Trading
Recently, Kraken announced its upcoming collaboration with fintech company Backed to launch a new tokenized stock product called “xStocks.” This service will enable Kraken users outside the U.S. to purchase U.S. listed stocks and ETFs issued in the form of SPL tokens via the Solana blockchain. This means that users will be able to trade these tokenized assets on the Kraken platform and even operate directly on-chain, investing and managing using supported crypto wallets. Most importantly, these xStocks tokens can also serve as collateral for other DeFi protocols or applications in the future, a feat difficult to achieve in traditional financial systems.
Breaking Investment Boundaries: Global Users Can “Buy US Stocks”
Mark Greenberg, Head of Global Consumer Business at Kraken, stated: “We are redefining stock investment, offering a true alternative for customers eager to break free from existing investment limitations. Through xStocks, we make US stocks more accessible, immediate, and borderless.” He pointed out that the current ways global investors access US stocks are outdated and filled with restrictions, from trading hours and cross-border fees to cumbersome regulatory hurdles. The launch of xStocks aims to simplify all of this using blockchain technology, enabling everyone to easily participate in the US market.
Continuing Kraken’s Strategic Blueprint: Expanding from the U.S. to Global Markets
The launch of xStocks marks a significant step in Kraken’s strategy of “integrating crypto with traditional finance.” Previously, Kraken had launched stock trading services in the U.S., allowing users to trade over 11,000 U.S. listed stocks and ETFs through the Kraken App. Currently, this service is limited to U.S. users, but Kraken has stated that it plans to expand into the UK, Europe, and Australia markets in the future. xStocks represents the globalization of this expansion strategy, aiming to “allow anyone, anywhere to easily invest in U.S. assets.” Kraken plans to gradually expand the range of assets supported by xStocks and the regions available, thoroughly breaking down the boundaries of traditional markets.
xStocks is not just a new product; it may represent a new paradigm for the future of finance. With the low cost, high efficiency, and transparency provided by blockchain technology, tokenized assets are rapidly rising, challenging the core operational methods of traditional financial systems.
Risk Warning
Investing in cryptocurrencies carries a high degree of risk, and their prices can be highly volatile. You may lose all of your principal. Please assess the risks carefully.
