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In a groundbreaking move, Kraken, one of the world’s leading cryptocurrency exchanges, has launched a revolutionary product that’s set to redefine global investing. Announced on May 22, 2025, Kraken’s new xStocks initiative introduces tokenized versions of U.S. equities, allowing non-U.S. investors to trade iconic stocks like Apple, Tesla, and Nvidia around the clock—24/7, with no weekend closures. Built on the Solana blockchain, this offering is a bold step toward bridging traditional finance (TradFi) and decentralized finance (DeFi), promising to democratize access to U.S. markets like never before. Here’s how Kraken is shaking up the financial world and what it means for the future of investing.
xStocks: Tokenized U.S. Equities That Never Sleep
Kraken’s xStocks, developed in partnership with Backed Finance, bring over 50 major U.S.-listed stocks and ETFs to the blockchain as SPL tokens on Solana. These include household names like Apple, Tesla, Nvidia, and ETFs such as the SPDR S&P 500 (SPY) and SPDR Gold Shares (GLD). Unlike traditional stock markets, which operate on fixed hours (typically 9:30 a.m. to 4:00 p.m. ET, Monday through Friday), xStocks can be traded 24 hours a day, seven days a week. This eliminates the frustration of market closures, time zone barriers, and weekend downtime, allowing investors in Europe, Latin America, Africa, and Asia to engage with U.S. equities on their own schedules.
Each xStock token is 1:1 backed by the underlying asset, securely held by Backed Finance, and redeemable for its cash value. This ensures price alignment with traditional markets while leveraging blockchain’s instant settlement and transparency. Kraken’s co-CEO Arjun Sethi emphasized the transformative potential, stating, “Access to traditional U.S. equities remains slow, costly, and restricted. With xStocks, we’re using blockchain technology to deliver something better—open, instant, accessible, and borderless exposure to some of America’s most iconic companies.” The offering, however, is currently unavailable to U.S. customers due to regulatory constraints, targeting instead non-U.S. markets where demand for U.S. equities is high but access is often limited.
Why 24/7 Trading Matters
The 24/7 trading model isn’t just a gimmick—it addresses real pain points in traditional finance. Global investors often face high fees, slow settlement times, and geographic restrictions when trying to access U.S. stocks through local brokerages. For someone in Asia, trading U.S. equities means staying up late to catch market hours or relying on intermediaries that add layers of cost and delay. Kraken’s xStocks eliminate these barriers, offering a seamless, cost-effective alternative. As Mark Greenberg, Kraken’s Global Head of Consumer, put it, “We’re reimagining equities investing and ushering in a new wave of demand from clients seeking better alternatives to the status quo.”
Beyond accessibility, xStocks unlock new possibilities. Since they’re issued as tokens on Solana, users can trade them on Kraken’s platform or on-chain through compatible wallets. This opens the door to DeFi use cases—like using tokenized Tesla shares as collateral for crypto loans—that are impossible in TradFi. The Solana blockchain, known for its high throughput and low latency, ensures fast, scalable transactions, making it an ideal foundation for this innovation. With no weekend closures, investors can react to news and market shifts in real time, a flexibility that mirrors the always-on nature of crypto markets.
A Strategic Move in Kraken’s TradFi-DeFi Bridge
Kraken’s xStocks launch is part of a broader strategy to merge traditional and decentralized finance. The exchange recently rolled out equities trading for U.S. clients, offering access to over 11,000 U.S.-listed stocks and ETFs directly within its app. Plans are underway to expand this service to the U.K., Europe, and Australia, pending regulatory approvals. The xStocks initiative takes this vision global, using blockchain to bypass the limitations of legacy systems. Kraken Securities, a FINRA-regulated broker-dealer, ensures compliance, while the company is actively engaging with regulators in the jurisdictions where xStocks will be offered.
This isn’t Kraken’s first foray into blending TradFi and crypto. The exchange has introduced commission-free stock trading, partnered with Mastercard for crypto spending, and launched FX perpetuals with 24/7 access. But xStocks marks a significant escalation, positioning Kraken as a pioneer in tokenization—a trend gaining traction across the industry. BlackRock and Robinhood have also announced plans for tokenized securities, and the SEC recently held a roundtable on the topic, signaling growing mainstream interest. Kraken’s move comes at a pivotal moment, with bitcoin rallying and a more crypto-friendly regulatory environment under the Trump administration, which has rolled back previous SEC lawsuits against the exchange.
The Risks and Challenges Ahead
While the potential of xStocks is undeniable, the road ahead isn’t without hurdles. Tokenized equities aren’t new—Binance tried a similar offering in 2021 but shuttered it after regulatory pushback in multiple countries. Kraken is taking a more cautious approach, working with regulators and excluding U.S. users to avoid similar pitfalls. However, tokenized stocks exist in a regulatory gray area. Token holders typically lack voting rights or direct claims to dividends, which could complicate corporate actions or shareholder litigation. Kraken will need to navigate a complex web of international regulations to ensure xStocks remain compliant and sustainable.
There’s also the question of adoption. While 24/7 trading and DeFi integration are exciting, they may not immediately appeal to traditional investors accustomed to legacy systems. The tokenized real-world assets (RWA) market, which includes stocks, is still small—stocks account for just $373.4 million of the sector’s $22.7 billion market cap as of May 20, 2025. Kraken will need to educate users and build trust to drive mainstream uptake. On the technical side, Solana’s scalability is a strength, but past network congestion issues (like those seen during high-traffic periods) could pose risks if xStocks see massive demand.
A Glimpse Into the Future of Investing
Kraken’s xStocks launch is more than a new product—it’s a preview of where financial markets are headed. The ability to trade U.S. equities 24/7, with no weekend closures, challenges the very structure of traditional exchanges. Legacy systems, with their fixed hours and operational dependencies, may soon face pressure to adapt or risk becoming obsolete. As posts on X reflect, the crypto community is buzzing with excitement, with some calling it a “game-changer” for global investing. Institutional interest in tokenized assets is also growing, with firms like BlackRock jumping on the bandwagon, suggesting that Kraken’s timing couldn’t be better.
For non-U.S. investors, xStocks offer a cheaper, faster, and more flexible way to tap into U.S. markets. For Kraken, it’s a chance to cement its role as a leader in the TradFi-DeFi convergence. The exchange plans to expand the range of tokenized assets and jurisdictions over time, potentially unlocking even broader access. If successful, xStocks could inspire a wave of innovation, pushing other exchanges and brokerages to rethink how equities are traded and held. In an era where crypto and traditional finance are increasingly intertwined, Kraken’s bold move might just be the spark that lights the way to a borderless, always-on financial future.
This article reflects the opinions of the publisher based on available information at the time of writing. It is not intended to provide financial advice, and it does not necessarily represent the views of the news site or its affiliates. Readers are encouraged to conduct further research or consult with a financial advisor before making any investment decisions.
