Kraken to offer tokenized shares of Apple, Tesla, and Nvidia for non-US customers

Kraken, one of the world’s largest crypto exchanges, has announced plans to roll out tokenized versions of 50 US stocks and ETFs, giving international customers round-the-clock access to assets like Apple, Tesla, Nvidia, and the SPDR S&P 500 ETF (SPY), The Wall Street Journal reported Thursday.

The move aims to lower barriers for non-US investors seeking exposure to American equities, according to the company.

Branded as xStocks, the product will run on the Solana blockchain and begin rolling out in the coming weeks across Europe, Latin America, Africa, and Asia.

Kraken says each xStock will be backed 1:1 by real shares of the underlying asset. The exchange’s partner, Backed Finance, will acquire and custody the physical stocks or ETF shares and issue a corresponding number of tokenized versions on-chain.

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Each token will be redeemable for the cash value of the asset it represents, helping maintain price parity with traditional markets. Like cryptocurrencies, xStocks will trade 24/7—including nights, weekends, and holidays—when conventional stock exchanges are closed.

Kraken says its goal is to make access to American equities faster, cheaper, and more flexible for investors around the world. Currently, many overseas investors face high brokerage fees, limited asset availability, and long settlement times when buying US stocks through local financial intermediaries.

According to Kraken co-CEO Arjun Sethi, tokenization on a public blockchain could help solve those challenges. In an interview with The Block in April, Sethi said tokenized equities could eventually surpass stablecoins in market size due to their transparency and global accessibility.

Tokenized equities are not a new concept, but they’ve been controversial.

In 2021, Binance attempted a similar initiative, offering tokenized versions of Coinbase and Tesla stock. The product allowed users to trade fractional shares via digital tokens settled in Binance USD (BUSD).

However, following regulatory scrutiny and increasing pressure from authorities in multiple jurisdictions, Binance discontinued the product later that year.

A Kraken spokesperson told the Journal that the company is “actively working with various regulators” as it expands tokenized stock offerings worldwide.