Kraken has announced the launch of its tokenized equities product xStocks on the Ethereum mainnet as part of its multi-chain strategy.
Launch of xStocks on Ethereum
On September 2, Kraken announced the launch of its product xStocks on the Ethereum mainnet. This expansion introduces over 60 tokenized assets, including stocks such as Apple (AAPLx), Tesla (TSLAx), and Nvidia (NVDAx). All xStocks are created as ERC-20 tokens and are backed one-to-one by the underlying securities through Kraken's partnership with Swiss firm Backed.
Integration with Ethereum DeFi
Eligible non-U.S. clients will soon be able to deposit and withdraw xStocks directly to Ethereum wallets, opening access to DeFi opportunities. These tokens can be used across various DeFi protocols for lending or yield farming. Kraken emphasizes that this launch extends the functionality of tokenized equities beyond trading, allowing them to function as composable financial instruments.
Tokenization Trend Gains Momentum
While xStocks do not grant shareholder rights such as voting, they offer price exposure, fractional ownership, and round-the-clock access to stocks. The product automatically reinvests dividends into new tokens. Kraken views this product as a 'neutral asset class' that seeks to make traditional stocks interoperable and programmable within blockchain systems.
The launch of xStocks on Ethereum highlights Kraken's commitment to promoting asset tokenization and expanding corporate capabilities, opening new horizons in the financial world.
