Kraken Expands Tokenized Securities to Europe
US crypto exchange Kraken has recently introduced tokenized securities in Europe, following an initial launch in June.
On Wednesday, the exchange announced that it has officially rolled out Backed’s tokenized securities offering, xStocks, for eligible investors in Europe.
This European expansion comes months after Kraken hinted at its integration of tokenized stocks with Backed on the Solana blockchain in May, with an intention to launch the offering for clients across more than 140 countries worldwide.
A Kraken spokesperson added that the initial rollout “essentially covered all countries” except for the US, the United Kingdom, Canada, Australia, and jurisdictions within the European Union.
With xStocks, Kraken users in Europe can trade tokenized certificates that track popular US equities, offering them 24/5 access to extended trading hours without needing traditional brokers or intermediaries.
The announcement also noted that clients of the exchange are allowed to freely move their assets across compatible platforms, engage in self-custody, or store the tokenized assets independently from third-party service providers.
Mark Greenberg, Kraken’s global head of consumer, stated, “Expanding xStocks to the European Union was a natural next step for Kraken, given our dedicated growth strategy and market presence here.”
He added, “For too long, it’s been unnecessarily challenging to gain exposure to US markets, and with xStocks, we’re removing many of the barriers.”
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The expansion of Kraken’s xStocks in Europe signifies another significant development in the rising trend of tokenized securities within the region, with competing exchange Gemini and trading app Robinhood already providing similar offerings locally.
On Monday, Nasdaq, the world’s second-largest stock exchange by market capitalization, submitted a filing with the US securities regulator seeking approval to enter this burgeoning industry sector. In its argument, Nasdaq claimed that tokenized securities should be listed on established market players rather than on “siloed trading venues” and voiced concerns over US tokenized stocks gaining traction in Europe.
Regarding Nasdaq’s initiative, Greenberg remarked that the future of capital markets “won’t be one-size fits all.”
He added, “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,” according to his statement.
