Kraken, a leading cryptocurrency exchange, announced that its tokenized equities platform—branded as xStocks—has surpassed $5 billion in combined centralized exchange (CEX) and decentralized exchange (DEX) trading volume since its launch in July 2025.
This rapid growth underscores the surging demand for real-world asset (RWA) tokenization, allowing non-U.S. users to trade digital representations of U.S. stocks and ETFs 24/7 on blockchain rails. Alongside this, Kraken reported that revenues from the xStocks product have doubled, reflecting sustained user engagement rather than one-off curiosity.
Kraken’s Q3 2025 financial update provides context for this achievement, showing explosive overall growth. xStocks platform has generated over $1 billion in on-chain transactions and attracted more than 37,000 unique holders.
It offers tokenized versions of 60 U.S. equities like Apple, Nvidia, Meta as SPL tokens on the Solana blockchain, backed 1:1 by real assets held in custody under European regulations. Users can trade via Kraken Pro or the consumer app, and tokens are composable for DeFi uses like lending.
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Restricted to non-U.S. jurisdictions over 160 countries, with recent expansions to Europe. Integrations with platforms like Bybit, Phantom, OKX Wallet, and Telegram enhance liquidity and accessibility. Developed with Backed Finance, xStocks combines regulated token issuance with blockchain flexibility, addressing pain points like limited trading hours and high cross-border fees in traditional finance.
Kraken as an early leader in the RWA tokenization space, blending the $1 trillion crypto market with the $55 trillion global equities sector. Tokenized assets enable fractional ownership, instant settlements, and global access without intermediaries—potentially unlocking trillions in liquidity if U.S. regulations evolve to allow broader participation.
Kraken’s revenue doubling from xStocks signals real traction, driven by returning traders and institutional interest. The news has sparked buzz on X (formerly Twitter), with outlets like The Block amplifying the story and analysts highlighting its implications for DeFi-TradFi convergence.
However, challenges remain, including regulatory hurdles and market volatility that could affect tokenized holdings. Kraken’s momentum—bolstered by acquisitions like NinjaTrader and Small Exchange—suggests tokenized equities could become a core revenue driver. As RWAs are projected to hit $10 trillion on-chain by 2030, this is a pivotal step in redefining asset trading.
RWA tokenization involves converting physical or traditional financial assets into digital tokens on a blockchain. This process bridges traditional finance (TradFi) and decentralized finance (DeFi), offering several advantages:24/7 Trading and Accessibility Tokenized assets can be traded globally, anytime, unlike traditional markets with fixed hours. This suits investors across time zones.
Non-U.S. users, as seen with Kraken’s xStocks, can access U.S. equities without navigating complex cross-border regulations or intermediaries. Fractional Ownership Tokenization allows assets to be divided into smaller units, enabling fractional ownership.
For example, a $1,000 stock or a $1M property can be split into affordable tokens, democratizing investment for retail users. By enabling trading on blockchain platforms, tokenized assets unlock liquidity for traditionally illiquid markets. Kraken’s $5B trading volume for tokenized equities highlights this potential.
Tokens can be integrated into DeFi protocols for lending, borrowing, or collateral, further enhancing liquidity. Blockchain-based settlements are near-instantaneous, compared to T+2 or longer in traditional markets.
Eliminating intermediaries (brokers, clearinghouses) reduces fees, especially for cross-border trades. Blockchain’s immutable ledger ensures transparent ownership records, reducing fraud risks. Smart contracts automate processes like dividends or settlements, minimizing errors and costs.
Interoperability with DeFi Tokenized RWAs, like Kraken’s SPL tokens on Solana, can be used in DeFi ecosystems (e.g., lending on Aave, staking). This creates new revenue streams and use cases, blending TradFi stability with DeFi innovation.
Tokenization removes geographic barriers, allowing investors in over 160 countries as with Kraken’s xStocks to participate in markets previously restricted by regulation or infrastructure. Tokens can embed programmable features, like automated dividend payouts or governance rights, enhancing asset utility.
New financial products, like tokenized ETF baskets or hybrid securities, become feasible. Compliance with laws like the EU’s MiCA or U.S. securities rules is complex, limiting availability. Tokenized assets require trusted custodians to hold underlying assets, introducing counterparty risk.
Token values tied to real-world assets can fluctuate with market conditions. RWA tokenization, as demonstrated by Kraken’s $5B milestone, merges the $55T global equities market with the $1T crypto ecosystem. With projections of $10T in on-chain RWAs by 2030, benefits like liquidity, accessibility, and cost-efficiency could redefine how assets are owned and traded globally.