Imagine a world where trading stocks is as seamless as sending a cryptocurrency. Kraken and Backed Finance are turning this vision into reality with their groundbreaking tokenized equities, bridging the gap between traditional finance and blockchain innovation.
What Are Tokenized Equities and Why Do They Matter?
Tokenized equities represent traditional stocks like Netflix, Meta, and Coinbase on a blockchain. Unlike conventional trading, they offer:
- 24/7 global access
- Programmable features
- Reduced intermediaries
Kraken and Backed Finance: Pioneering the Future of Trading
Their xStocks product, launched on June 30, 2025, enables trading of tokenized shares across platforms like Kraken, Bybit, and Solana-based DeFi protocols. Mark Greenberg, Kraken’s global head of consumer business, emphasizes this isn’t just “Wall Street on a blockchain” but a complete reimagining of financial infrastructure.
How Tokenized Equities Enhance Global Financial Access
These innovations address key limitations of traditional markets:
| Feature | Traditional Markets | Tokenized Equities |
|---|---|---|
| Accessibility | Limited by geography | Global |
| Trading Hours | Market hours only | 24/7 |
The Regulatory Landscape for Tokenized Securities
Kraken advocates for “programmable and compliant open infrastructure.” While they’ve chosen Solana, competitors like eToro are exploring Ethereum for tokenizing 100 U.S. stocks. The SEC is actively engaging with industry leaders to shape frameworks for these innovations.
FAQs About Tokenized Equities
Q: Are tokenized equities legally recognized?
A: Yes, products like xStocks maintain compliance with existing financial regulations while leveraging blockchain benefits.
Q: How do tokenized equities differ from traditional stocks?
A: They offer greater accessibility, programmability, and operate on blockchain networks for faster settlements.
Q: What blockchains support tokenized equities?
A: Currently Solana (Kraken) and Ethereum (eToro), with potential for multi-chain solutions in future.
Q: Can I trade tokenized equities on DeFi platforms?
A: Yes, xStocks are available on Solana-based DeFi protocols, offering new possibilities for financial applications.
