Kraken and Backed Launch xStocks Tokenized Equities on Ethereum
Kraken and Backed are launching xStocks, a suite of tokenized equities on the Ethereum network, integrating stocks into DeFi.
- Eligible Kraken clients can deposit and withdraw xStocks as ERC-20 tokens, fully collateralized 1:1 by underlying equities.
- Tokenized stocks and ETFs can move between the exchange and self-custodial wallets, allowing access to Ethereum-based DeFi protocols.
- xStocks previously launched on Solana, BNB Chain, and TRON, generating over $3.5 billion in trading volume since June.
- Ethereum's smart contract capabilities provide extensive reach across decentralized applications.
- Kraken emphasizes a multi-chain strategy for accessibility and integration within existing ecosystems.
- The initiative reflects growing interest in tokenizing traditional financial instruments.
- Concerns remain regarding limited shareholder rights and fragmented regulations in tokenized equity offerings.