Kraken has launched tokenised securities trading in Europe with xStocks, expanding onchain exposure to US stocks and ETFs.
The European expansion comes months after Kraken announced its tokenised stocks integrations with Backed on the Solana blockchain back in May, with plans to launch the solution to clients in more than 140 countries worldwide. The initial rollout covered all countries except for the US, the UK, Canada, Australia, and the EU jurisdictions.
Opinions from Kraken and Nasdaq
Recently, Kraken partnered with Backed to expand access to tokenised equities on the Ethereum Mainnet, unlocking new opportunities for tokenised stocks and ETFs to be integrated across the smart contract network. With this new launch, Kraken users can trade tokenised certificated tracking of frequently used US equities through xStocks, gaining 24/5 access to extended trading hours without relying on traditional brokers. Kraken’s clients are also allowed to move assets freely across compatible platforms, self-custody, or store the tokenised assets independently from third parties.
The expansion in the EU is a key step forward for the company, given its mission to expand globally and strengthen its presence in the region. The company’s main aim is to remove the barriers the US markets face when it comes to exposure and use xStocks to remove these challenges.
Rival exchange Gemini and trading app Robinhood are already offering similar products locally. Recently, Nasdaq, the world’s second-largest stock exchange by market capitalisation, filed with the US securities regulator, looking to gain approval also and move into the growing industry sector, mentioning that tokenised securities should be listed on established market players. Nasdaq also voiced concerns about US tokenised stocks gaining traction in Europe.
Regarding Nasdaq’s move, Kraken’s Greenberg mentioned that the future of capital markets should be personalised, rather than one-size-fits-all, and that the real technological breakthrough lies in permissionless, interoperable platforms such as xStocks. With the platform, assets aren’t trapped inside a single exchange or blockchain, but they can move as freely as crypto.
