Kraken Joins Robinhood in Ushering In Tokenized US Stocks for Global Investors

Global cryptocurrency exchange Kraken is set to disrupt traditional finance, announcing it will soon offer tokenized versions of popular U.S. listed stocks and ETFs to clients in select non-U.S. markets. This move, powered by Backed's new xStocks offering and built on the Solana blockchain, promises to unlock 24/7, borderless access to American equities, directly challenging the limitations of legacy financial systems.

By issuing these tokenized assets as SPL tokens on Solana, Kraken will enable clients to trade them both on its platform and on-chain through compatible wallet providers. This approach also allows users to leverage their xStocks as collateral in ways currently impossible through traditional finance.

"We’re reimagining equities investing and ushering in a new wave of demand from clients seeking better alternatives to the status quo," said Mark Greenberg, Kraken global head of consumer. "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. This is what the future of investing looks like."

This development marks a significant escalation in the ongoing convergence of crypto and traditional financial markets. While competitors like Bybit recently launched direct trading of global stocks using the stablecoin USDT , Kraken's approach takes it a step further by tokenizing the underlying assets on a blockchain. This distinction is crucial: Bybit facilitates trading traditional stocks with crypto, while Kraken is creating blockchain-native versions of these stocks, potentially enabling new functionalities within the decentralized ecosystem.

Notably, Kraken is not alone in recognizing the disruptive potential of tokenized equities. Earlier this month, Robinhood, the platform known for commission-free trading, also revealed plans to develop a blockchain-based platform allowing European retail investors to trade tokenized versions of popular US stocks. Robinhood's initiative aims to streamline cross-border investing by replacing legacy systems with blockchain's efficiency and transparency, reportedly exploring both Arbitrum and Solana as potential underlying blockchain technologies.

Kraken's move with xStocks builds on its recent expansion into traditional equities trading for U.S. clients and signals a clear intent to democratize global access to financial markets. The exchange said it plans to steadily expand both the range of tokenized assets and the jurisdictions where xStocks are available, aiming to fundamentally reshape how investors worldwide interact with equity markets.

This series of announcements underscores a growing trend where leading crypto exchanges and brokerage platforms are not just facilitating crypto trading, but actively innovating to bridge the gap between digital assets and the traditional financial landscape, ultimately offering a more integrated and accessible investment experience.