Kraken expands tokenized stocks to Ethereum mainnet

Kraken has expanded its tokenized equities product, xStocks, to the Ethereum mainnet, marking another step in its multi-chain rollout. 

The move, announced on Sept. 2, follows earlier launches on Solana (SOL), BNB Chain, and TRON (TRX). The expansion introduces more than 60 tokenized assets, including Apple (AAPLx), Tesla (TSLAx), Nvidia (NVDAx), and SPYx, issued as ERC-20 tokens.

Each xStock is backed one-to-one by the underlying security through Kraken’s partnership with Swiss firm Backed.  By deploying on Ethereum (ETH), Kraken is opening access to one of the largest blockchain ecosystems, with more than $500 billion in assets secured and a rapidly growing decentralized finance market, valued at around $107 billion.

Integration with Ethereum DeFi

Eligible non-U.S. clients will soon be able to deposit and withdraw xStocks directly to Ethereum wallets, enabling transfers between Kraken and self-custody. Once on-chain, these tokens can be used across DeFi protocols for lending or yield farming activities.

Kraken emphasized that this launch extends the reach of tokenized equities beyond trading, allowing them to function as composable financial instruments.

Ethereum is the fourth network to support xStocks since the product’s debut in June. Trading activity has already been strong, with more than $3.5 billion in cumulative volume across centralized and decentralized platforms.

The product attracted over 25,000 unique holders and generated $400 million in sales on Solana alone in its first month of launch. Building on this momentum, the Ethereum expansion provides access to more significant liquidity and a larger user base.

Tokenization trend gains momentum

While xStocks do not grant shareholder rights like voting, they are intended to offer price exposure, fractional ownership, and round-the-clock access to stocks. It automatically reinvests dividends into new tokens.

The product, which Kraken refers to as a “neutral asset class,” aims to make traditional stocks interoperable and programmable within blockchain systems. The addition of Ethereum demonstrates Kraken’s dedication to a multi-chain strategy.

Over the next ten years, tokenized securities could be worth trillions of dollars, according to analysts, with platforms like xStocks laying the groundwork for wider adoption.