- Kraken partnered with GTN to expand xStocks beyond U.S. equities into global markets.
- Most tokenized stocks have been limited to US names like Apple, Nvidia, or Tesla ETFs.
- Tokenized stocks offer broader access, extended trading hours, and easier on-chain investing.
Payward, Kraken’s parent company, is teaming up with fintech firm GTN to give its xStocks tokenized shares a big boost. The plan is to go beyond US stocks and add equities from international markets, starting with Hong Kong, then rolling out to the UK, South Korea, and more of Europe.
xStocks is Kraken’s system for tokenized stocks, built alongside Backed. It lets people invest in US stocks and ETFs through crypto tokens, with each token backed one-to-one by real shares kept in regulated storage.
Up until now, most tokenized stocks have been limited to US names like Apple, Nvidia, Tesla, or S&P 500 ETFs. With this announcement, investors can now use blockchain to get exposure to stocks from outside the US, opening up huge Asian and European markets as part of the tokenized offering.
Why Hong Kong, the UK, and South Korea?
Hong Kong has been positioning itself to become a go-to spot for digital assets in the region, rolling out licensing systems for crypto trading platforms and encouraging tokenization projects. Its stock market is also a key entry point for investors looking at Chinese and Asian markets.
On the other hand, London is still among the biggest financial centers on the planet. For the past couple of years, the UK government has been pushing hard on tokenization and digital securities in wholesale markets through the Digital Securities Sandbox and other fintech initiatives.
Lastly, South Korea has one of the most active retail investing scenes in the world, with lots of people trading both stocks and crypto. Giving investors a blockchain-based way to get into Korean stocks could be a big draw for those who want simpler access to overseas markets.
Potential Benefits for Investors and Crypto
Tokenized stocks could fix some of the drawbacks of regular stock investing. A big advantage is better access, since some platforms let you trade beyond normal market hours or move assets on-chain anytime, making it much easier to transition between traditional finance and the crypto world.
Additionally, instead of having to buy a whole share of an expensive stock, investors can pick up tiny fractions of it, which reduces entry barriers.
Rather than trying to replace stock markets, tokenization is meant to upgrade them. In the end, this could build a single financial system where stocks, bonds, stablecoins, and cryptocurrencies all flow easily across connected blockchain networks.
Related: Kraken Parent Payward Pushes for US Crypto Bank Charter
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