Kraken’s xStocks Brings Tokenized U.S. Stocks to Solana Blockchain

Kraken, a leading global cryptocurrency exchange, has announced a partnership with Backed, a tokenized asset issuer, and the Solana Foundation to launch xStocks, a platform for trading tokenized U.S. stocks and exchange-traded funds (ETFs). Unveiled on May 22, 2025, at the Solana Accelerate conference, xStocks aims to democratize access to traditional financial assets by enabling non-U.S. investors to trade tokenized versions of equities like Apple (AAPL), NVIDIA (NVDA), and Tesla (TSLA) on the Solana blockchain. This move marks a significant step in bridging traditional finance (TradFi) and decentralized finance (DeFi), offering seamless, borderless access to global markets.

xStocks: Tokenized Equities on Solana

The xStocks platform will allow eligible Kraken clients in select non-U.S. markets to trade over 50 tokenized U.S. stocks and ETFs directly through the Kraken app. Unlike traditional stock trading, which is constrained by market hours and geographic restrictions, xStocks leverages Solana’s high-speed, low-cost blockchain to enable 24/7 trading with near-instant settlement. Backed, known for issuing tokenized real-world assets (RWAs), will provide the tokenized assets, ensuring each token is fully backed by the underlying security and compliant with regulatory standards.

Kraken’s announcement builds on its earlier plans to offer tokenized versions of major U.S. stocks like Apple, NVIDIA, and Tesla for non-U.S. clients. The initiative aims to provide investors with fractional ownership opportunities, lower barriers to entry, and integration with DeFi protocols for enhanced utility, such as using tokenized assets as collateral. The partnership with the Solana Foundation underscores Solana’s growing role as a blockchain for tokenized RWAs, leveraging its scalability and transaction speeds of up to 65,000 transactions per second.

Trend of Integrating TradFi with DeFi

Kraken’s venture into tokenized equities aligns with a broader industry movement toward merging traditional finance (TradFi) with decentralized finance (DeFi). In reality, TradFi and DeFi are actively working to bridge the gap between their ecosystems. Numerous traditional financial institutions, such as BlackRock and Fidelity, have launched BTC and ETH ETF products and are applying to the SEC to offer ETFs for additional altcoins, providing their clients with exposure to crypto assets. Meanwhile, crypto exchanges like Kraken and Bybit are exploring stock tokenization, enabling their users to seamlessly invest in traditional financial assets like stocks using their crypto holdings. As the crypto industry increasingly enters the mainstream investment landscape, institutions have reached a consensus: those who can offer a broader range of investment products and a more seamless trading experience will better meet customer demands.

Kraken’s xStocks differentiates itself by focusing on public equities and leveraging Solana’s infrastructure for cost efficiency and speed. The exchange’s prior experience with crypto trading and custody positions it well to handle tokenized assets, with robust security measures like cold storage for underlying securities.

The choice of Solana is strategic. With a market cap of $92.79 billion and SOL trading at $178 as of press time on May 26, 2025, Solana has solidified its position as a top blockchain for DeFi and RWAs. Its ecosystem, hosting hundreds of active projects, supports xStocks’ vision of integrating tokenized assets with DeFi protocols, enabling use cases like lending or yield farming. According to a report by the Harkness Institute, various types of real-world assets have already been tokenized on Solana. In February this year, Franklin Templeton expanded its $594 million OnChain U.S. Government Money Market Fund (FOBXX) to the Solana blockchain. Parcl, a decentralized real estate trading platform built on Solana, enables users to speculate on global real estate market price fluctuations. Agridex, a blockchain marketplace leveraging Solana’s infrastructure, facilitates the tokenization of agricultural commodities like coffee, wine, and olive oil, streamlining global trade.

Challenges and Opportunities

While xStocks promises to redefine investment access, challenges remain. Regulatory hurdles, particularly in Europe and Asia, could limit the platform’s rollout.

On the opportunity side, xStocks aligns with the growing demand for fractional ownership. Due to their affordability and flexibility, tokenized assets are attracting increasing interest from retail investors, particularly among Gen Z. By offering tokenized equities, Kraken taps into this demographic, potentially capturing a new segment of retail investors.

Looking Ahead

Kraken plans to roll out xStocks to eligible non-U.S. markets with an initial focus on major equities and ETFs. The platform will integrate with Kraken’s existing infrastructure, allowing users to manage crypto and tokenized assets in one interface. Backed’s role ensures compliance with European regulations, as its tokenized assets are registered under EU securities laws. The Solana Foundation will support ecosystem development, potentially onboarding more tokenized assets in the future.

According to a Bloomberg report in March this year, Kraken is preparing for an IPO in Q1 2026. If the tokenized stock trading initiative is successfully implemented, it is likely to significantly boost Kraken’s IPO prospects, enhancing market recognition and confidence in the exchange.

As tokenization gains traction, xStocks could set a precedent for how exchanges bridge TradFi and DeFi. For now, the crypto community is watching closely, as xStocks further cements Solana's position as a hub for innovative financial products. Whether xStocks can deliver on its promise of “no borders, no brokers, no barriers” will depend on execution, regulatory navigation, and market reception.