Kraken, Backed Bring Tokenized Equities Offering to Ethereum Mainnet

Crypto exchange Kraken and Swiss tokenization firm Backed said on Tuesday they are bringing xStocks, a suite of tokenized equities, to the Ethereum network, aiming to integrate stcoks into decentralized finance (DeFi) ￰0￱ initiative allows eligible Kraken clients to deposit and withdraw xStocks directly on Ethereum, where they will exist as ERC-20 tokens fully collateralized 1:1 by underlying ￰1￱ means investors can move tokenized stocks and ETFs between the exchange and self-custodial wallets while accessing Ethereum-based decentralized finance (DeFi) ￰2￱ rollout on Ethereum follows earlier xStocks launches on Solana, BNB Chain, and ￰3￱ its debut in June, the product has generated over $3.5 billion in combined trading volume across centralized and decentralized exchanges.

Ethereum’s position as the largest smart contract network gives xStocks immediate reach across thousands of decentralized applications. "Our multi-chain strategy is deliberate," Kraken co-CEO Arjun Sethi said in a statement. "It ensures tokenized equities are accessible across ecosystems, portable between wallets and protocols and composable within the applications users already ￰4￱ is the next logical ￰5￱ move comes as momentum grows for bringing traditional financial instruments including equities onto blockchain rails, also known as tokenization of real-world ￰6￱ exchanges like Gemini and Robinhood have already introduced tokenized ￰7￱ for EU users.

However, tokenized equity offerings also drew concerns such as limited shareholder rights and fragmented ￰8￱ more: Tokenized Stocks Aren’t Working (Yet)