Kraken, a leading cryptocurrency exchange, has unveiled its xStocks initiative within the European Union, a move designed to simplify and democratize access to the US stock market for European investors. This innovative platform seeks to address common challenges such as prohibitive fees, restricted market entry, and the overall complexity typically associated with traditional brokerage services.
This strategic expansion marks a significant step in Kraken's global rollout of xStocks, extending on-chain exposure to a broad spectrum of prominent US-listed stocks and exchange-traded funds (ETFs) to millions of clients throughout the EU. By leveraging Backed's xStocks technology, Kraken enables eligible EU-based investors to trade tokenized representations of these popular equities directly through the Kraken app, offering an alternative to conventional brokers and intermediaries.
A key advantage of xStocks is the enhanced control it provides to clients over their assets, allowing for seamless movement across compatible platforms or into self-custody. Furthermore, these tokenized assets can be integrated as foundational financial components within various decentralized finance (DeFi) protocols, fostering greater financial flexibility. Clients will also benefit from extended trading hours, with 24/5 access available through Kraken. Initially launched as Solana Program Library tokens on the Solana blockchain, Kraken plans to broaden xStocks token support to include BEP-20 Ethereum Mainnet and other high-impact blockchain ecosystems like Ink, ensuring high-speed, low-cost transactions and deeper integration with the evolving Web3 landscape.
Kraken's commitment to making global financial markets more accessible and efficient for everyone is evident in this launch. By breaking down traditional barriers and embracing blockchain technology, they are paving the way for a more open, interconnected, and equitable financial system, empowering individual investors to participate more freely in the global economy.