RT The Block (@TheBlock__)Kraken expands xStocks offering to Europe as tokenized stocks gain steam https://t.co/PjPdeRlVCl ...

Market Expansion - Kraken expands xStocks to Europe, offering tokenized US stocks and ETFs to EU users [1]

Kraken expands xStocks offering to Europe as tokenized stocks gain steam https://t.co/PjPdeRlVCl ...

Core Viewpoint - Kraken has expanded its xStocks tokenized equity service to European Union clients, allowing them to trade digital representations of popular U.S. stocks and ETFs through its mobile app, utilizing Backed's tokenization technology [1][3]. Group 1: Service Expansion - The xStocks service has generated over $3.5 billion in combined trading volume since its international launch in June, offering more than 60 tokenized equities to clients across 140 countries outside the U.S. [2] - The expansion to the EU addresses challenges for European investors seeking U.S. market exposure, such as currency conversion fees and delays tied to U.S. market hours [3][4]. Group 2: Competitive Landscape - Kraken joins a growing number of platforms offering tokenized U.S. equities to international customers, with competitors like Robinhood, Bybit, and KuCoin also launching similar services [5]. Group 3: Business Strategy and Growth - Kraken is reportedly seeking $500 million in new funding at a $15 billion valuation, preparing for a potential IPO targeted for early 2026, and has sought regulatory approval from the SEC for its tokenized trading platform [6]. - The company has diversified its offerings by acquiring Breakout, a proprietary trading platform, allowing qualified traders access to significant trading capital [7][8]. Group 4: Multi-Chain Strategy - Initially deployed on the Solana blockchain, xStocks has expanded to support additional networks, including BNB Chain and TRON, generating over $2.5 billion in trading volume across platforms [9]. - Future plans include launching xStocks on Ethereum as ERC-20 tokens and supporting Kraken's upcoming Ink blockchain and other high-impact networks [10]. Group 5: Regulatory Environment - Traditional market operators have raised concerns about tokenized stock offerings, citing a lack of investor protection compared to conventional markets, prompting calls for stricter regulations [11]. - Despite regulatory uncertainty, major exchanges like Nasdaq and eToro are pursuing tokenized asset strategies, with Nasdaq filing a proposal to offer its own tokenized securities platform [12].

Tokenization is one of the hottest trends in digital assets today, but not every asset class benefits equally from the shift. Cesar Pereira, who serves as VP of Business Development for Kadena Labs, says tokenized stocks are unlikely to gain traction, while private credit could be the breakout use case that defines the next wave of adoption. “When we talk about tokenized stocks, or what I call equities, that's a very mature marketplace today,” Pereira said in an interview with TheStreet Roundtable's Alp G ...

What can users expect from tokenized stocks?“Over time, there’ll be instant settlement of trading... 24/7/365 trading, instead of 9:30-4pm” -@rleshner https://t.co/VU4nBpV8DN ...

Tokenized Assets & Onchain Finance - Ondo Finance launches Ondo Global Markets, offering a large selection of tokenized U S stocks & ETFs onchain [1] - Over 100 tokenized assets are now live, with plans to add hundreds more [1] - The platform aims to provide the liquidity of traditional finance on Ethereum [1] Industry Trend - The development signifies a move towards "Wall Street 2 0" with RWAs (Real World Assets) being integrated into platforms like Trust Wallet [1]

Investment Strategy - The strategy focuses on leveraging tokenized stocks, specifically once Ondo Finance lists over 100 tokenized stocks [1] - The strategy involves borrowing against NVDA (Nvidia) at a 70% Loan-to-Value (LTV) ratio [1] - The strategy aims to capitalize on premium spreads between 24/7 trading and traditional market hours [1] - The strategy suggests compounding returns through Morpho markets [1] Risk Management - The industry advises against investing in "shitters" (low-quality assets) that lack trillion-dollar infrastructure and trade at high revenue multiples (e.g., 13x revenue) [1]

Network Growth & Adoption - App revenue reached $148 million, a 92% increase from 2024, surpassing all other networks [2] - Total transactions amounted to 29 billion, a 46% year-over-year increase, exceeding all other networks combined by more than 4x [2] - Active addresses increased by 2x year-over-year, reaching 83 million [2] Decentralized Exchange (DEX) Activity - DEX volume surged to $144 billion, a 180% year-over-year increase [2] Real World Assets (RWAs) & Tokenization - All-time high in RWAs, exceeding $500 million [2] - Volume on tokenized stocks reached $92 million [2] - Bitcoin on Solana increased by 7x year-over-year, reaching $765 million [2] Stablecoin Activity - Stablecoin supply increased to $118 billion, up from $33 billion [2] - Stablecoin transfers amounted to $295 billion, a 62% year-over-year increase [2] Token & Revenue - 843k new tokens were launched, a 138% year-over-year increase, with 357 valued at more than $1 million [2] - Revenue reached $77 million, a 22% year-over-year increase [2] - Trading platforms earned $85 million in revenue on $8 billion in volume, and launchpads earned $51 million [2] Transaction Fees - Median fees remained at $0001, with the lowest fee volatility of any network [2]

Network Growth & Activity - Solana's app revenue reached $148 million, a 92% increase year-over-year, surpassing all other networks [2] - Total transactions on Solana amounted to 29 billion, up 46% year-over-year, exceeding all other networks combined by more than 4x [2] - Active addresses on Solana doubled year-over-year, reaching 83 million [2] - 843 thousand new tokens were launched, up 138% year-over-year, with 357 valued at more than $1 million [2] Decentralized Exchange (DEX) & Stablecoin Activity - DEX volume on Solana surged to $144 billion, reflecting a 180% increase year-over-year [2] - Stablecoin supply on Solana increased from $33 billion to $118 billion [2] - Stablecoin transfers on Solana totaled $295 billion, up 62% year-over-year [2] Real World Assets (RWAs) & Tokenized Stocks - Real World Assets (RWAs) on Solana reached an all-time high, exceeding $500 million [2] - Volume on tokenized stocks reached $92 million [2] - Bitcoin on Solana increased 7x year-over-year, reaching $765 million [2] Revenue & Fees - Trading platforms earned $85 million in revenue on $8 billion in volume, and launchpads earned $51 million [2] - Median fees remained at $0001, with the lowest fee volatility of any network [2]