This new offering is powered by Backed’s xStocks and is meant to give eligible non-U.S. clients the ability to invest in American stocks and ETFs, according to a Monday (June 30) blog post.
Kraken began listing 60 different tokenized assets in its app Monday and plans to expand the number of available assets over time, according to the release. It also plans to roll out xStocks support to more than 185 countries over the next several days.
“For the first time, people all over the world can own and use a share of a tokenized stock like they would use money,” Kraken Co-CEO Arjun Sethi said in the release. “You can move it, hold it, spend it or borrow against it. All from your wallet, with no intermediaries, no borders and no delays.”
The xStocks are available to trade on Kraken 24 hours a day, five days a week, and can be withdrawn to self-custodial wallets, according to the release.
Backed Co-founder Adam Levi said in the release that tokenized equities are “the next step for crypto as the space matures from niche digital assets into a market that serves a global audience.”
“This opportunity comes from the tokenization of in-demand equities meeting the influx of previously excluded users, eventually culminating in a market that’s both more efficient, composable and accessible than traditional finance,” Levi said.
Sethi told The Wall Street Journal May 22 that Kraken was set to start rolling out tokenized equities that would be available to customers in Europe, Latin America, Africa and Asia, but not the United States.
A Kraken spokeswoman told the WSJ that Kraken is “actively working with various regulators” to ensure xStocks are offered legally.
Backed announced the collaboration in a May 22 press release, saying xStocks on Kraken will serve retail and institutional investors.
“Kraken and Solana join us as we lead the charge, powering access, liquidity and enabling DeFi integrations, but our mission doesn’t stop there: xStocks should be available on any chain, and on every exchange,” Backed said in the release.
