Cryptocurrency Exchange Kraken Expands $3.5B Tokenized Stock Trading to European Union

Crypto exchange Kraken announced today (Tuesday) it has extended its xStocks tokenized equity service to European Union clients, following a phased global rollout that began in late June.

The expansion allows eligible EU-based investors to trade digital representations of popular U.S. stocks like Tesla and Amazon and exchange-traded funds (ETFs) directly through Kraken's mobile app, powered by Swiss firm Backed's tokenization technology.

Since launching internationally in June, xStocks has generated more than $3.5 billion in combined trading volume across centralized and decentralized exchanges, according to company data. The service initially made over 60 tokenized equities available to clients across 140 countries outside the United States.

Kraken Extends Tokenized Stock Service to EU Clients

The tokenized stock offering addresses longstanding friction points for European investors seeking U.S. market exposure. Traditional cross-border investing often involves currency conversion fees, settlement delays tied to U.S. market hours, and limited transfer flexibility between platforms.

"Expanding xStocks to the European Union was a natural next step for Kraken, given our dedicated growth strategy and market presence here," said Mark Greenberg, Kraken's Global Head of Consumer. "For too long, it's been unnecessarily challenging to gain exposure to U.S. markets, and with xStocks we're removing many of the barriers."

The service operates around the clock, 24 hours a day, five days a week, breaking from traditional equity trading windows. Users can also move their tokenized holdings between compatible platforms or store them in self-custody wallets, features unavailable with conventional brokerage accounts.

Competition Heats Up for Tokenized Asset Market

Kraken joins a growing roster of platforms offering tokenized U.S. equities to international customers. Robinhood launched similar services for European clients earlier this year, while rival crypto exchanges Bybit and KuCoin debuted its own tokenized stock product after Kraken's initial June announcement.

The tokenized equity push comes as Kraken pursues broader business expansion. The San Francisco-based exchange is reportedly seeking $500 million in new funding at a $15 billion valuation, preparing for a potential initial public offering targeted for early 2026. The company has also sought regulatory approval from the Securities and Exchange Commission (SEC) for its tokenized trading platform.

Last week, Kraken further diversified its offerings by acquiring Breakout, a proprietary trading platform that provides funded accounts to crypto traders. The September 1 deal marks Kraken's entry into the prop trading sector, allowing qualified traders to access up to $200,000 in trading capital after passing performance evaluations. Traders who meet the requirements can retain up to 90% of their profits, with the service set to be integrated into Kraken Pro over time.

Multi-Chain Strategy Expands Beyond Solana

Kraken initially deployed xStocks as SPL tokens on the Solana blockchain but has since expanded to support additional networks. The company launched the service on BNB Chain in July and added support for the TRON network in August, generating over $2.5 billion in combined trading volume across platforms.

The exchange announced earlier this month it would bring xStocks to Ethereum as ERC-20 tokens, tapping into the network's extensive decentralized finance ecosystem. Future expansion plans include support for Kraken's upcoming Ink blockchain and other "high-impact" networks.

Traditional market operators have raised concerns about tokenized stock offerings, arguing they lack investor protection safeguards present in conventional markets. The World Federation of Exchanges has pushed regulators to take a harder stance against such products.

Despite regulatory uncertainty, major exchanges continue pursuing tokenized asset strategies. Nasdaq filed a proposal with the SEC in September to offer its own tokenized securities platform, while eToro announced plans to tokenize 100 popular U.S. stocks on Ethereum.