Kraken Partners with Backed to Launch Tokenized U.S. Stocks on Solana

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The cryptocurrency exchange Kraken has announced a strategic partnership with tokenized asset firm Backed to launch xStocks, a groundbreaking platform offering tokenized versions of U.S.-listed equities and ETFs on the Solana blockchain. This move marks a significant step in Kraken’s expansion into the real-world asset (RWA) sector and positions it as a direct competitor to traditional financial platforms like Robinhood.

The announcement was made during the Solana Accelerate event, where Kraken revealed that eligible clients in select non-U.S. markets will soon gain access to over 55 tokenized stocks and ETFs, including high-demand assets such as Apple, Tesla, and Nvidia. By leveraging blockchain technology, Kraken aims to lower barriers to entry for global investors seeking exposure to American financial markets.

"Today we’re announcing our new partnership with Backed for the launch of xStocks on Solana. xStocks will offer tokenized versions of U.S.-listed equities, available soon to eligible Kraken clients in select non-U.S. markets."
— Kraken Exchange

This initiative not only enhances Kraken’s product suite but also aligns with its broader strategy of bridging crypto and traditional finance—potentially paving the way for a future IPO.

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Expanding Access to U.S. Equities Through Blockchain

One of the most compelling aspects of xStocks is its focus on non-U.S. investors, particularly those in Europe and the UK, who often face regulatory, logistical, and financial hurdles when trying to invest in U.S. markets. Traditional brokerage accounts may require extensive documentation, high minimum investments, or are simply unavailable due to jurisdictional restrictions.

With xStocks, Kraken eliminates many of these obstacles by offering:

By tokenizing real-world assets like equities, Kraken provides a more inclusive, efficient, and accessible investment model—especially valuable for retail investors in regions with limited market access.

The Growing Momentum of Tokenized Assets

The rise of tokenized securities represents one of the most transformative trends in modern finance. According to industry data, the total market capitalization of real-world assets (RWA) on blockchain has surged from $15.9 billion to over **$22.7 billion** in just a few months—an increase of 43%. While much of this growth has been driven by tokenized U.S. Treasuries and private credit instruments, equity tokens remain a nascent yet rapidly expanding segment, currently valued at $370 million.

Kraken’s entry into this space signals growing confidence in the long-term viability of asset tokenization.

Arjun Sethi: “Equity Tokens Will Surpass Stablecoins”

Kraken co-CEO Arjun Sethi shared bold predictions during his keynote at Solana Accelerate, stating that tokenized equities could eventually surpass stablecoins in market size. He noted:

“Right now it’s one stock. But soon it could be 500 or 1,000. The growth potential here is exponential.”

Sethi envisions a future where tokenization extends beyond stocks to include derivatives such as futures and options—further amplifying the market’s reach and complexity. If even a fraction of global equities were tokenized, the resulting financial layer could rival or exceed the current scale of the stablecoin market, which exceeds $130 billion.

This vision underscores Kraken’s belief that blockchain isn’t just an alternative financial system—it’s the next evolution of capital markets.

👉 See how decentralized platforms are unlocking new investment opportunities worldwide.

Competitive Landscape: Robinhood and the Race for Tokenized Markets

Kraken is not alone in pursuing this frontier. Mainstream brokerage Robinhood has also entered the race, recently revealing plans to develop its own dedicated blockchain aimed at enabling European users to trade tokenized U.S. stocks. This shift reflects a broader industry trend: traditional financial platforms are recognizing the advantages of blockchain—speed, transparency, and cost-efficiency—and adapting accordingly.

However, Kraken holds several key advantages:

These strengths position Kraken as a leader in the convergence of crypto-native infrastructure and traditional asset classes.

Strategic Implications: Preparing for an IPO?

Kraken’s aggressive expansion—including the acquisition of NinjaTrader for $1.5 billion and the rollout of tokenized stocks—comes amid speculation about a potential **$1 billion fundraising round** ahead of a future IPO. The introduction of xStocks diversifies Kraken’s revenue streams and strengthens its value proposition to institutional investors.

By aligning itself with emerging fintech trends like RWA tokenization, Kraken demonstrates its ambition to become more than just a crypto exchange—it aims to be a full-service digital asset platform capable of competing with Wall Street incumbents.

This transformation mirrors a larger shift across the financial industry: from siloed systems to interconnected, borderless markets powered by blockchain technology.

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Frequently Asked Questions (FAQ)

Q: What are tokenized stocks?
A: Tokenized stocks are digital representations of real shares listed on traditional exchanges. They are issued on blockchains and allow holders to gain price exposure to assets like Apple or Tesla without owning the actual stock certificate.

Q: Who can trade xStocks on Kraken?
A: Initially, xStocks will be available to eligible Kraken clients in select non-U.S. markets. U.S.-based users are not included in the initial rollout due to regulatory considerations.

Q: Are tokenized stocks regulated?
A: Regulatory frameworks vary by jurisdiction. Platforms like Kraken work within existing compliance structures, often partnering with licensed entities to ensure legal operation while navigating evolving digital asset laws.

Q: How does Solana benefit xStocks?
A: Solana offers fast transaction speeds (up to 65,000 TPS) and low fees, making it ideal for frequent trading and fractional ownership models required by global retail investors.

Q: Is my investment in tokenized stocks secure?
A: Security depends on both the platform and underlying custody solutions. Kraken employs institutional-grade security protocols, and Backed ensures each token is backed 1:1 by actual securities held in regulated custodians.

Q: Can I receive dividends from tokenized stocks?
A: Yes. Holders of tokenized equities through xStocks are entitled to proportional dividend distributions, mirroring the rights of traditional shareholders.

👉 Start exploring tokenized financial products and take control of your global portfolio today.

The Future of Capital Markets Is On-Chain

Kraken’s launch of xStocks on Solana represents more than just a product update—it's a statement about the future of finance. As blockchain technology continues to mature, we’re witnessing the emergence of a new capital market infrastructure: one that is faster, more transparent, and globally inclusive.

With major players like Kraken and Robinhood investing heavily in tokenization, and institutions such as BlackRock and Franklin Templeton already active in RWA projects, the momentum is undeniable.

For investors around the world—especially those historically excluded from U.S. markets—this shift opens unprecedented opportunities. And for platforms like Kraken, it’s not just about innovation; it’s about redefining what a financial ecosystem can be.

As asset tokenization gains traction, one thing becomes clear: the line between traditional finance and decentralized finance is blurring—and Kraken is positioning itself at the forefront of this revolution.