Kraken plans to launch tokenized trading of US stocks, allowing non-US users to trade major stocks such as Tesla, Inc. (TSLA.US) 24 hours a day.

The American cryptocurrency exchange Kraken has announced that it will launch tokenized versions of over 50 US stocks and ETFs for non-US customers in Europe, Latin America, Africa, and Asia in the coming weeks, including well-known companies like Apple Inc. (AAPL.US), Tesla, Inc. (TSLA.US), NVIDIA Corporation (NVDA.US), etc. These tokens, called "xStocks", will run on the Solana blockchain, allowing for 24/7 trading 7 days a week, aiming to provide global investors with a more convenient way to invest in US stocks. Kraken is partnering with the financial technology company Backed Finance, which will purchase and custody the actual stocks and ETF shares and issue the corresponding number of tokens. These tokens will maintain the same price as their corresponding stocks and can be exchanged for their respective cash value. Kraken's Co-CEO Arjun Sethi stated, "We are reducing barriers for global investors to access the US stock market." He noted that overseas investors typically buy US stocks through local brokers, which often involve high costs and longer settlement times. It is worth noting that this service by Kraken will not be available to US users to avoid potential regulatory issues. Other cryptocurrency exchanges have tried to launch similar tokenized stock services in the past but were forced to discontinue due to regulatory pressures. Kraken stated that it is actively collaborating with regulatory agencies in various countries to ensure the legal and compliant launch of its xStocks product. Kraken's xStocks plan is seen as an important step in the integration of traditional finance and the cryptocurrency field. By tokenizing traditional stocks, investors can flexibly invest without being restricted by traditional trading hours. In addition, these tokens can also be transferred to personal digital wallets or used as collateral for decentralized finance (DeFi) strategies, further expanding their use cases.