Kraken, a popular cryptocurrency exchange, has broadened the scope of xStocks, a tokenized equities platform. The xStocks platform is now open to investors across the European Union (EU). This opens news on-chain access to U.S. equities for millions of users. Thanks to this, eligible EU investors can trade blockchain-based popular U.S. stocks and exchange-traded funds (ETFs) directly via the Kraken app.

Kraken Expands xStocks Platform Services to EU

These digital assets, developed in partnership with Swiss fintech firm Backed, mirror the value of underlying securities and can be stored, transferred, or traded like other cryptocurrencies.

“Expanding xStocks to the European Union was a natural next step for Kraken, given our dedicated growth strategy and market presence here. For too long, it’s been unnecessarily challenging to gain exposure to U.S. markets, and with xStocks we’re removing many of the barriers,” said Mark Greenberg, Kraken’s global head of consumer.

International investors have faced issues accessing U.S. equities due to regulatory complexities. They had relied on intermediaries. xStock has the goal to eliminate this issue and allow EU users to purchase tokenized certificates of U.S. equities without the involvement of traditional brokerages. The investors will have complete control of their holdings and can move their assets across compatible platforms.

The tokenized assets also carry a DeFi advantage. Through their use as SPL tokens on the Solana blockchain, they are able to take advantage of fast, inexpensive transactions. Plans are in motion to further integrate xStocks into the decentralized finance ecosystem by expanding to Ethereum and Binance Smart Chain (BEP-20). Within DeFi protocols, these tokens can also be used as modular financial building blocks, opening up new avenues for trading, lending, and yield schemes.

The launch of Kraken Exchange in the EU, which provides trading around the clock, is indicative of a larger trend in the sector toward tokenization and decentralized financial systems. The potential magnitude of this shift is highlighted by the prediction made by analysts at McKinsey & Company and Boston Consulting Group that the global tokenized asset market may reach trillions of dollars by the 2030s.

By bridging the gap between traditional equities and blockchain-based markets, Kraken’s xStocks expansion positions the exchange at the forefront of global financial innovation, offering European investors unprecedented access, flexibility, and transparency in equity trading.

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