Key Takeaways:
- Kraken and Backed have launched their tokenized equities product on Ethereum, offering ERC-20 tokens fully backed by real-world stocks and ETFs.
- Since debuting on Solana in June, xStocks has extended to BNB Chain, TRON, and now Ethereum, reaching over $3.5 billion in combined trading volume.
- Tokenized stocks enable 24/7, fractional ownership, and near-instant settlement.
- Backed says Ethereum’s deep liquidity and protocol compatibility will help xStocks integrate across decentralized wallets, apps, and trading platforms.
Cryptocurrency exchange Kraken and asset tokenization startup Backed have launched their tokenized equities offering, xStocks, on Ethereum, the firms announced Tuesday. The rollout introduces ERC-20 versions of traditional stocks and ETFs, with each token fully backed on a 1:1 basis by the corresponding asset.
xStocks first launched on Solana in late June and has since expanded to BNB Chain and TRON, with trading volumes surpassing $3.5 billion across centralized and decentralized platforms, reflecting the growing demand for tokenized access to traditional equities.
Ethereum is the next logical step. It is the center of gravity for smart contract innovation, on-chain liquidity and decentralized finance,” said Kraken co-CEO Arjun Sethi. “By launching xStocks on Ethereum, we are making tokenized equities programmable, interoperable and continuously accessible to builders and institutions worldwide. This is not just about product expansion. It is about anchoring capital markets to the most secure and transparent rails available.
Backed co-founder Roberto Klein said Ethereum’s DeFi infrastructure is a natural fit for xStocks, highlighting the potential for deeper integration with wallets, protocols, and decentralized applications.
According to Kraken, eligible users will soon be able to move xStocks between their exchange accounts and Ethereum-based self-custody wallets, offering greater flexibility for on-chain participation.
Tokenized Equities Expand Access, Lower Barriers, and Accelerate Settlement
Tokenized stocks are blockchain-based representations of publicly listed equities, typically backed 1:1 by the actual asset. They give investors a way to track the price of companies, like Apple, Tesla or Nvidia without holding the shares directly.
Tokenized stocks differ from traditional equities in several aspects, including broader trading accessibility, easier onboarding, and greater global reach. While conventional markets are limited to fixed trading hours and often require local brokerage accounts, tokenized equities can be traded on web3 platforms around the clock.
Furthermore, investors can use stablecoins and crypto wallets to buy and hold these assets, lowering entry barriers, particularly in regions where access to traditional financial infrastructure is limited.
Tokenization also supports fractional ownership, enabling users to buy small portions of high-priced stocks, which is something not always available through standard brokerages.
In addition, settlement times are typically faster, with trades finalizing within minutes rather than the two-day cycle known in traditional markets. Also, assets can be held in self-custodial wallets, giving investors direct control and reducing reliance on intermediaries.
Despite these benefits, tokenized stocks operate within an evolving regulatory environment, and they may not carry the same shareholder rights as conventional equities. Still, they represent a growing trend toward more flexible and globally accessible financial instruments.
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