Kraken Shatters Barriers: Launches Tokenized Securities Trading Across Europe

Kraken just rewrote Europe's financial rulebook—launching tokenized securities trading that bridges crypto and traditional markets overnight.

The Digital On-Ramp

European investors now access stocks, bonds, and ETFs as digital tokens—trading 24/7 without traditional market hours or intermediaries. Kraken's platform executes settlements in seconds, not days, using blockchain to bypass legacy clearinghouses.

Regulatory Chess Move

The rollout complies with MiCA regulations—securing necessary approvals across key European jurisdictions. It’s a stark contrast to the U.S.’s enforcement-first approach, giving Kraken a first-mover advantage in a market hungry for institutional-grade crypto products.

Finance’s New Pulse

Tokenization doesn’t just digitize assets—it rearchitects ownership. Fractional shares, global liquidity, and instant settlements become default features, not luxuries. Traditional finance? Still charging fees for paperwork that could’ve been an email.

Kraken’s play isn’t just a product launch—it’s a tectonic shift. And Europe’s regulators are already holding the door open.

The offering, available via Kraken’s PEDSL-CY entity, marks a major step forward in bridging traditional markets with blockchain-based innovation.

According to Kraken, xStocks are available only to EU-based clients who have passed an appropriateness assessment or who qualify as professional investors. Importantly, xStocks are not registered under the U.S. Securities Act and cannot be sold to or held by U.S. persons.

What Are xStocks and How Do They Work?

Kraken explains xStocks function as tokenized certificates that mirror the market prices of real-world U.S. stocks and ETFs. Each token is backed 1:1 by the underlying security and issued on-chain as an SPL or BNB token.

Unlike actual shares, xStocks do not confer shareholder rights such as voting or dividends. Instead, holders gain exposure to the price performance of the asset through a financial instrument issued by Backed Assets (JE) Limited, a Jersey-based company.

Kraken initially offers 60 assets through xStocks, including 55 stocks and 5 ETFs. Household names such as Tesla, Apple, and GameStop are among the available listings.

Features and Trading Options

xStocks can be traded 24 hours a day, five days a week, extending access beyond traditional market hours. Weekend trading support is in development, which could push tokenized securities closer to true round-the-clock availability.

Kraken also allows for fractional investments, with a minimum entry point as low as €1. This opens the door to a wider pool of retail investors who might otherwise be priced out of high-value stocks.

In addition, Kraken supports self-custody of xStocks, giving users the ability to withdraw holdings to a compatible on-chain wallet. This flexibility ensures that investors retain direct control over their assets, aligning with the principles of decentralized finance.

Tokenization as a Growing Trend

Kraken emphasizes that xStocks are secured through audited reserves, robust custody arrangements, and blockchain infrastructure. The company has also announced plans to expand support for additional blockchain standards, including BEP-20 on BNB Chain.

Recent partnerships with TRON DAO and upcoming integrations with other networks such as Inkhighlight Kraken’s strategy to broaden accessibility across ecosystems.

The rise of tokenized securities underscores the momentum behind real-world asset (RWA) tokenization, a trend that seeks to modernize markets by combining the stability of traditional assets with the transparency and efficiency of blockchain. As tokenized assets gain traction, initiatives like Kraken’s xStocks may reshape how global investors interact with both equities and digital finance.