Kraken Introduces Tokenized Securities Trading in Europe

Core Insights - Kraken has launched xStocks, a tokenized securities trading product aimed at European investors, facilitating access to popular stocks and ETFs [1] - xStocks are available exclusively to EU-based clients who meet specific criteria and are not registered under the U.S. Securities Act, thus cannot be sold to U.S. persons [2] - Each xStock token mirrors the market price of real-world U.S. stocks and ETFs, backed 1:1 by the underlying security, but does not confer shareholder rights [3] Product Offering - Kraken initially offers 60 assets through xStocks, including 55 stocks and 5 ETFs, featuring well-known companies like Tesla, Apple, and GameStop [4] - xStocks can be traded 24/5, with plans for weekend trading support, enhancing accessibility beyond traditional market hours [5] - The minimum investment for xStocks is set at €1, allowing broader participation from retail investors [5] User Control and Security - Kraken supports self-custody of xStocks, enabling users to withdraw holdings to compatible on-chain wallets, ensuring direct control over assets [6] - xStocks are secured through audited reserves and robust custody arrangements, with plans to expand support for additional blockchain standards [7] Industry Trends - The rise of tokenized securities reflects a growing trend in real-world asset (RWA) tokenization, aiming to modernize markets by combining traditional asset stability with blockchain efficiency [8] - Initiatives like Kraken's xStocks may significantly alter how global investors engage with equities and digital finance [8]