The Kraken exchange platform officially launches xStocks for European investors, allowing them to purchase tokenized versions of American stocks and ETFs such as Apple, Tesla or NVIDIA. A revolution in access to US markets, but with subtleties to understand.
In brief
- Kraken launches xStocks, tokenized US stocks and ETFs accessible to Europeans.
- Extensive trading, investment from €1 and dividends reinvested automatically.
- On-chain assets usable in DeFi, within a structured regulatory framework.
What is xStocks? Definition and operation
THE xStocks are tokenized representations of publicly traded US stocks and ETFs. Developed in partnership with Swiss fintech Backed Financethese innovative financial instruments are issued in the form of SPL tokens on the Solana blockchain. Each xStock is backed by a real stock at a strict 1:1 ratio, with the underlying securities held by approved custodians under Swiss regulatory supervision.
Concretely, when an investor buys an AAPLx (xStock Apple), Backed Finance holds a real Apple share in custody. This architecture ensures that the token supply remains perfectly aligned with the actual assets held. Prices are updated in real time via data feeds Chainlinkensuring a faithful correspondence with Wall Street prices.
Kraken currently offers 60 tokenized assets : 55 individual stocks including technology giants like 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.
The concrete advantages for the European investor
Extensive trading and affordability
The major advantage of xStocks lies in their accessibility 24 hours a day, 5 days a weekwell beyond the traditional Wall Street hours limited to around 6:30 a.m. daily. For investors withdrawn into a Solana-compatible personal wallet, trading even becomes possible 24/7 via DeFi protocols like Jupiter or Raydium.
Another notable advantage of fractional investing is that it is possible to acquire xStocks from just 1 eurowith no obligation to purchase a whole share. This democratization allows small holders to access securities whose unit price can exceed several hundred dollars. Additionally, no trading fees apply when purchasing USD or USDG on Kraken.
Dividends and DeFi integration
Dividends generated by the underlying stocks are automatically reinvested in the corresponding asset. Rather than receiving a cash payment, the investor's token balance increases proportionally, via a multiplier system managed by Backed Finance. This mechanism simplifies management and promotes compound capitalization.
The on-chain nature of xStocks also opens up new possibilities: use as collateral on lending protocols such as Kamino (first major DeFi protocol to accept tokenized shares), provision of liquidity on AMM pools, or instant transfer between platforms without an intermediary.
Eligibility and regulatory framework
xStocks are accessible to residents ofEuropean Economic Area (EEA) after completion of a suitability questionnaire. They are on the other hand unavailable in the United States, Canada, United Kingdom, Australia and Belgium.
The purchase is made exclusively in fiat currency (EUR, USD) on Kraken. The tokens are issued by Backed Assets (JE) Limited, a Jersey-based entity, and distributed through Payward Digital Solutions Ltd under license from the Bermuda Monetary Authority. This structure aims to ensure compliance with European regulations, in particular MiFID II.
How to buy xStocks on Kraken?
To access xStocks, eligible users must first complete identity verification (KYC) on Kraken and then respond to a suitability questionnaire. Once validated, the purchase is made directly from the Kraken Pro application or the website, in EUR or USD. The tokens can then be kept on the platform or withdrawn to a compatible Solana (Phantom, Solflare) or Ethereum wallet for complete self-custody.
In summary: what to remember
60 tokenized US stocks and ETFs (Apple, Tesla, NVIDIA, S&P 500, etc.)
- Trading 24/5 on Kraken, 24/7 in DeFi
- Investment from 1€, no fees in USD/USDG
- Dividends reinvested automatically
- No voting rights or legal ownership of the share
- 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. Visit our risk disclosure page at eu.kraken.com. Derivatives 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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