xStocks on Kraken: American Tokenized Stocks Arrive in Europe
The Kraken exchange platform officially launches xStocks for European investors, allowing the purchase of tokenized versions of American stocks and ETFs such as Apple, Tesla, or NVIDIA. A revolution in access to US markets, but with nuances to understand.
In Brief
- Kraken launches xStocks, tokenized US stocks and ETFs accessible to Europeans.
- Extended trading, investment from 1€, and dividends automatically reinvested.
- On-chain assets usable in DeFi within a structured regulatory framework.
What are xStocks? Definition and Operation
xStocks are tokenized representations of American stocks and ETFs listed on the stock exchange. Developed in partnership with the Swiss fintech Backed Finance, these innovative financial instruments are issued as SPL tokens on the Solana blockchain. Each xStock is backed by a real stock according to a strict 1:1 ratio, with the underlying securities held by licensed custodians under Swiss regulatory supervision.
Concretely, when an investor buys an AAPLx (xStock Apple), Backed Finance holds a genuine Apple share in custody. This architecture ensures that the token supply remains perfectly aligned with the real assets held. Prices are updated in real time via Chainlink data feeds, ensuring a faithful match with Wall Street prices.
Kraken currently offers 60 tokenized assets: 55 individual stocks including tech giants such as Apple (AAPLx), Tesla (TSLAx), NVIDIA (NVDAx), Microsoft, Amazon, and Meta, as well as 5 ETFs including the famous SPDR S&P 500 (SPYx). The full list can be viewed at xstocks.fi/products.
Concrete Benefits for European Investors
Extended Trading and Financial Accessibility
The main strength of xStocks lies in their accessibility 24/5, far beyond traditional Wall Street hours limited to about 6.5 hours daily. For investors storing tokens in a personal wallet compatible with Solana, trading is even possible 24/7 via DeFi protocols such as Jupiter or Raydium.
Fractional investing is another notable advantage: it is possible to acquire xStocks from only 1 euro, without the obligation to buy a whole share. This democratization allows small investors to access securities whose unit price may exceed several hundred dollars. Moreover, there are no trading fees when buying in USD or USDG on Kraken.
Dividends and DeFi Integration
Dividends generated by the underlying stocks are automatically reinvested in the corresponding asset. Instead of receiving a cash payout, the investor’s token balance proportionally increases via a multiplier system managed by Backed Finance. This mechanism simplifies management and promotes compound growth.
The on-chain nature of xStocks also opens unprecedented possibilities: use as collateral on lending protocols like Kamino (the first major DeFi protocol to accept tokenized stocks), providing liquidity on AMM pools, or instant transfers between platforms without intermediaries.
Eligibility and Regulatory Framework
xStocks are accessible to residents of the European Economic Area (EEA) after completing a suitability questionnaire. However, they are unavailable in the United States, Canada, the United Kingdom, Australia, and Belgium.
Purchases are made exclusively in fiat currency (EUR, USD) on Kraken. Tokens are issued by Backed Assets (JE) Limited, an entity based in Jersey, and distributed via Payward Digital Solutions Ltd under a Bermuda Monetary Authority license. This structure aims to ensure compliance with European regulations, notably MiFID II.
How to Buy xStocks on Kraken?
To access xStocks, eligible users must first complete identity verification (KYC) on Kraken, then complete a suitability questionnaire. Once validated, purchases are made directly from the Kraken Pro app or website, in EUR or USD. Tokens can then be kept on the platform or withdrawn to a Solana wallet (Phantom, Solflare) or compatible Ethereum wallet for full self-custody.
In Summary: Key Takeaways
60 tokenized US stocks and ETFs (Apple, Tesla, NVIDIA, S&P 500…)
- 24/5 trading on Kraken, 24/7 on DeFi
- Investment from 1€, no fees in USD/USDG
- Dividends automatically reinvested
- No voting rights or legal ownership of the stock
- Available in the EEA (excluding USA, UK, Canada, Australia, Belgium)
Trading derivatives involves risks and is not suitable for all investors. You could lose more than your initial investment. Please consult our risk disclosure page at eu.kraken.com. Derivative products are provided by Payward Europe Digital Solutions (CY) Limited, regulated by the Cyprus Securities and Exchange Commission (CySEC), license no. 342/17.
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