US crypto exchange Kraken is the latest platform to introduce tokenized securities in Europe, following an initial rollout in June.
Kraken has officially launched Backed’s tokenized securities offering, xStocks, to eligible European investors, the exchange told Cointelegraph on Wednesday.
The European expansion comes months after Kraken teased its tokenized stocks integration with Backed on the Solana blockchain in May, with plans to launch the offering to clients in over 140 countries globally.
The initial rollout “essentially covered all countries” except for the US, the United Kingdom, Canada, Australia and the European Union jurisdictions, a spokesperson for Kraken told Cointelegraph.
EU expansion a natural step
Kraken users in Europe can trade tokenized certificates tracking popular US equities through xStocks, gaining 24/5 access to extended trading hours without relying on traditional brokers or intermediaries.
The exchange’s clients are also enabled to move assets freely across compatible platforms, self-custody, or store the tokenized assets independently from third parties, the announcement added.
“Expanding xStocks to the European Union was a natural next step for Kraken, given our dedicated growth strategy and market presence here,” said Mark Greenberg, Kraken’s global head of consumer.
“For too long, it’s been unnecessarily challenging to gain exposure to US markets, and with xStocks, we’re removing many of the barriers,” he added.
Kraken on Nasdaq’s tokenized stocks push
Kraken’s xStocks expansion in Europe marks another milestone in the growing trend for tokenized securities in the region, with rival exchange Gemini and the trading app Robinhood already operating similar products locally.
On Monday, Nasdaq, the world’s second-largest stock exchange by market capitalization, filed with the US securities regulator seeking approval to move into the growing industry sector as well. It argued that tokenized securities should be listed on established market players, opposing them to “siloed trading venues” and expressing concerns about US tokenized stocks gaining traction in Europe.
Related: Nasdaq seeks access to Gemini’s crypto services via investment: Report
Addressing Nasdaq’s move, Kraken’s Greenberg said that the future of capital markets “won’t be one-size fits all.”
“There will be space for walled, KYC-only models like what Nasdaq is exploring, but the real technological breakthrough lies in permissionless, interoperable platforms like xStocks,” Greenberg told Cointelegraph, adding:
“With xStocks, assets aren’t trapped inside a single exchange, wallet or even blockchain. They can move as freely as any crypto asset. That openness is the essence of Web3: reducing friction, increasing transparency, and ensuring tokenized equities serve everyone, not just a gated subset with access to legacy platforms.”
Nasdaq’s proposal is a significant milestone in the convergence of traditional finance and blockchain technology, Backed co-founder Yehonatan Goldman told Cointelegraph.
“This initiative serves as a powerful validation of the growing institutional interest in tokenized assets,” he said, adding:
“We see this move not only as an endorsement of our approach but also as a powerful indicator of the immense market potential for tokenized assets. This is a clear signal that the future of finance will be built on this technology.”
Magazine: Can Robinhood or Kraken’s tokenized stocks ever be truly decentralized?
