US-based crypto exchange Kraken has expanded into tokenized securities in Europe, marking its latest step in the sector after an initial rollout in June.
The exchange announced on Wednesday that it has launched Backed’s tokenized securities product, xStocks, for eligible European investors.
This move follows Kraken’s earlier plans revealed in May, when it partnered with Backed to bring tokenized stock offerings to clients in over 140 countries via the Solana blockchain. The initial rollout excluded the US, UK, Canada, Australia, and EU jurisdictions, according to a Kraken spokesperson.
Expansion into the EU
With the European launch, Kraken users can now access tokenized certificates that track major US equities through xStocks. The service offers 24/5 extended trading hours, removing the need for traditional brokers or intermediaries.
Additionally, clients can transfer assets seamlessly across supported platforms, choose self-custody, or securely store tokenized holdings independent of third parties, the exchange noted.
“Bringing xStocks to the European Union was a natural progression for Kraken, aligned with our focused growth strategy and strong presence in the region,” said Mark Greenberg, Kraken’s global head of consumer.
“For too long, accessing US markets has been unnecessarily difficult. With xStocks, we’re breaking down many of those barriers,” he added.
Kraken and Nasdaq’s tokenized stock ambitions
Kraken’s European xStocks launch highlights the accelerating adoption of tokenized securities in the region, where competitors like Gemini and Robinhood are already active with similar offerings.
Meanwhile, Nasdaq—the world’s second-largest stock exchange—took a significant step on Monday by filing with the US Securities and Exchange Commission (SEC) to enter the tokenized securities market. In its filing, Nasdaq argued that such products should be hosted on established market platforms rather than “siloed trading venues,” while also voicing concerns over the growing popularity of tokenized US equities in Europe.
Commenting on Nasdaq’s entry, Greenberg emphasized that the future of capital markets will involve diverse models.
“There will be room for closed, KYC-only systems like what Nasdaq is pursuing, but the true innovation lies in permissionless, interoperable platforms such as xStocks,” he said.
“With xStocks, assets aren’t trapped inside a single exchange, wallet or even blockchain. They can move as freely as any crypto asset. That openness is the essence of Web3: reducing friction, increasing transparency, and ensuring tokenized equities serve everyone, not just a gated subset with access to legacy platforms.”
Nasdaq’s filing represents a major step in bridging traditional finance with blockchain technology, according to Backed co-founder Yehonatan Goldman, who spoke with Cointelegraph.
“This move strongly validates the rising institutional appetite for tokenized assets,” Goldman said, adding:
“We see this move not only as an endorsement of our approach but also as a powerful indicator of the immense market potential for tokenized assets. This is a clear signal that the future of finance will be built on this technology.”
