Kraken brings tokenized Apple, Tesla, Nvidia stocks to Solana for 24/7 trading

Kraken is expanding its footprint in the tokenized equities market, with the launch of a new trading platform for US stocks and ETFs for non-US customers. A May 22 announcement from the tier-1 cryptocurrency exchange introduced xStocks, a new product line that offers tokenized versions of popular US-listed stocks and exchange-traded funds (ETFs). The tokens, structured as SPL assets, the native token standard on the Solana blockchain, will initially be available to clients in select jurisdictions across Europe, Latin America, Africa, and Asia. What is xStock? How does it work? Each xStock token is backed by actual shares of the underlying security, held by Kraken’s partner firm Backed Finance. The tokens are redeemable for the cash value of the represented asset, which the company says will help maintain price parity with traditional markets. Supported equities include major names such as Apple , Tesla , and Nvidia, as well as ETFs like SPDR S&P 500 (SPY) and SPDR Gold Shares. Unlike traditional equities, xStocks will be tradable 24/7 on Kraken’s platform and compatible with blockchain wallets, allowing for continuous global access. Meanwhile, investors will also be able to use these assets as collateral in crypto trading strategies. Kraken expects to reduce cross-border friction and lower access costs for investors outside the US. The tokens will not be available to US-based users, as Kraken continues to navigate domestic regulatory constraints. The launch follows Kraken’s earlier expansion into traditional equities trading for US customers, offering direct access to over 11,000 stocks and ETFs through the Kraken app. While these offerings operate under separate frameworks, both are part of the exchange’s broader strategy to integrate traditional and digital asset classes. US access and regulatory considerations While Kraken’s xStocks offering is not available to US customers due to regulatory constraints, the company has introduced traditional stock and ETF trading for US clients in select states. This service operates under a different regulatory framework, with Kraken Securities LLC, a FINRA-regulated division, facilitating the trading of over 11,000 US-listed stocks and ETFs. Kraken’s booming crypto business fuels growth Kraken’s expansion into tokenized equities aligns with a period of financial growth for the company. In its Q1 2025 earnings report, Kraken reported $472 million in gross revenue, a 19% year-on-year increase. Adjusted EBITDA reached $187 million, up 17% from the previous year, despite a quarter-on-quarter decline. The exchange processed $208.7 billion in trading volume, marking a 29% year-on-year rise, while funded accounts grew to 3.9 million. The firm has also been actively growing its portfolio of services. Earlier this year, Kraken completed a $1.5 billion acquisition of US-based futures trading platform NinjaTrader. The deal, considered one of the largest between a traditional finance firm and a crypto company, enables cross-platform access to both crypto and traditional derivatives products. In Europe, Kraken recently launched a suite of regulated crypto derivatives under the Markets in Financial Instruments Directive (MiFID), operating through its Cyprus-based entity, Payward Europe Digital Solutions. Additionally, Kraken has partnered with Bunq, the second-largest neobank in the EU, to enable crypto trading in six European countries. The post Kraken brings tokenized Apple, Tesla, Nvidia stocks to Solana for 24/7 trading appeared first on Invezz

Source: Invezz