The world of digital finance continues to evolve, and Kraken, one of the most established cryptocurrency exchanges, has taken a bold step forward by launching xStocks — a tokenized stock trading service that allows global investors to gain exposure to top U.S. equities using crypto. This innovative offering enables users to buy digital tokens pegged to real-world stocks like Tesla, NVIDIA, Apple, and Microsoft, all without needing a traditional brokerage account.
With xStocks, Kraken is blurring the lines between traditional finance and decentralized markets, offering seamless access to high-demand assets through a fully crypto-native experience.
👉 Discover how tokenized stocks are reshaping global investing
What Are Tokenized Stocks?
Tokenized stocks are blockchain-based digital assets that mirror the price and performance of real shares in publicly traded companies. Each token is backed 1:1 by actual equity held in custody, ensuring accurate price tracking with minimal slippage. Unlike traditional stock trading, which requires intermediaries like brokers and clearinghouses, tokenized versions operate on decentralized networks, enabling faster settlements and broader accessibility.
In Kraken’s xStocks program, each token carries the original stock ticker followed by an “x” — for example, NVDAx for NVIDIA or TSLAx for Tesla. These tokens are priced in stablecoins like USDT or major cryptocurrencies such as BTC, allowing investors to trade U.S. equities using their existing crypto holdings.
This model opens doors for international investors who may face regulatory, geographic, or financial barriers when accessing American markets directly.
How xStocks Works on Kraken
Kraken’s xStocks platform is designed for simplicity and efficiency. Here's how it works:
- Users deposit crypto (e.g., USDT, BTC) into their Kraken account.
- They navigate to the xStocks section and select from a curated list of 60 leading U.S. companies.
- Purchase tokens like AAPLx, MSFTx, or JPMx directly with crypto.
- Tokens reflect real-time market prices during U.S. trading hours.
- Holdings can be stored, transferred, or used across DeFi applications.
It’s important to note that while the underlying asset is a real stock, ownership does not confer voting rights or dividend payouts in the traditional sense. Instead, any dividends are typically reinvested or distributed in-kind by the issuer.
xStocks is not operated directly by Kraken but powered by Backed Finance, a financial infrastructure provider specializing in asset tokenization. This partnership enhances liquidity and ensures consistent pricing across multiple platforms, including Bybit and other crypto exchanges.
Supported Assets and Market Coverage
The initial launch includes shares from some of the most influential companies in technology, finance, and crypto:
- Tech Giants: NVIDIA (NVDAx), Apple (AAPLx), Microsoft (MSFTx), Intel (INTLx), Cisco (CSCOx)
- Financial Leaders: JPMorgan Chase (JPMx), Berkshire Hathaway (BRK.Bx)
- Crypto-Adjacent Firms: Coinbase (COINx)
- Enterprise Software: Oracle (ORCLx)
These selections cater to both long-term investors and active traders looking to diversify into blue-chip equities through a crypto-first interface.
👉 See which top stocks you can trade with crypto today
Trading Hours and Availability
While traditional U.S. stock markets operate on a 5-day week from 9:30 AM to 4:00 PM EST, xStocks offers near-continuous trading:
- Trading Window: Monday to Friday, 24 hours per day
- Closed: Saturdays, Sundays, and U.S. public holidays
Although Backed Finance supports 7×24 trading internally, Kraken aligns its xStocks trading window with U.S. market hours to minimize volatility caused by off-hours price discrepancies.
This structure balances innovation with stability, ensuring that token prices remain tightly correlated with official exchange data.
Why Non-U.S. Investors Benefit Most
Despite Kraken being a U.S.-based exchange, American residents cannot participate in xStocks due to SEC regulations around securities and unregistered investment products. However, this restriction creates significant opportunities for international users.
For investors outside the U.S., especially in regions with limited access to foreign equities or strict capital controls, xStocks offers:
- Borderless access to U.S. markets
- No need for local brokerage accounts
- Fast settlement times (blockchain speed)
- Integration with DeFi protocols for yield generation
This democratization of access exemplifies how blockchain technology can level the financial playing field.
DeFi Integration: Beyond Simple Trading
One of the standout advantages of tokenized stocks is their compatibility with decentralized finance (DeFi). Once you own NVDAx or TSLAx tokens, they aren’t locked inside Kraken’s ecosystem — you can:
- Transfer them to your personal wallet
- Use them as collateral for crypto loans
- Provide liquidity on decentralized exchanges
- Participate in yield-generating strategies
Essentially, these tokens behave like any other cryptocurrency asset while maintaining exposure to real equity performance — combining the best of Wall Street and Web3.
Frequently Asked Questions (FAQ)
Q: Can U.S. citizens use Kraken’s xStocks service?
A: No. Due to U.S. securities regulations enforced by the SEC, xStocks is not available to residents of the United States.
Q: Do I own actual shares when I buy NVDAx or AAPLx?
A: Not directly. You own a token backed by real shares held in trust by Backed Finance. You benefit from price movements but don’t have shareholder voting rights.
Q: Are dividends paid on tokenized stocks?
A: Yes. Dividends are distributed proportionally to token holders, usually in USDT or equivalent stablecoin form.
Q: Is there a fee to trade xStocks?
A: Kraken applies standard trading fees similar to its crypto pairs. There are no additional brokerage or custody fees.
Q: Can I trade xStocks on weekends?
A: No. Trading is only available Monday through Friday during U.S. market hours.
Q: What happens if the underlying company goes bankrupt?
A: In such cases, the value of the token would likely drop to zero, mirroring the fate of the actual stock.
The Future of Asset Tokenization
Kraken’s move into tokenized equities signals a growing trend: the convergence of traditional finance and blockchain technology. As more institutions explore fractional ownership, instant settlement, and cross-border accessibility, services like xStocks could become mainstream gateways for global investing.
With core keywords like tokenized stocks, Kraken xStocks, crypto stock trading, NVIDIA stock token, Tesla stock token, DeFi investing, blockchain assets, and global stock access, this shift addresses strong search intent around secure, innovative ways to invest beyond fiat systems.
👉 Start exploring the future of asset ownership now
As regulatory clarity improves and infrastructure matures, we may see even broader adoption — including ETFs, bonds, and real estate entering the tokenized space.
For now, Kraken’s xStocks stands as a pioneering step toward a more inclusive financial future, where anyone with internet access and crypto can participate in global markets — no matter where they live.