Kraken xStocks: tokenized stocks explained

Original illustration: stock and ETF certificates in custody connected to xStocks tokens and a personal wallet

Each xStock is a blockchain token whose value follows a U.S. stock or ETF held in custody. Holders get the price performance of that security, but what they own is the issuer’s token, not shares in the company.

Background and issuer

Kraken began rolling out xStocks on June 30, 2025, with 60 tokenized U.S. stocks and ETFs on Solana. Backed built the product, which brought stock exposure into crypto exchanges and wallets, and Payward later bought the company: its acquisition of Backed Finance was completed in January 2026, bringing Backed and Kraken into the same group. xStocks is the product name; the tokens are issued by Backed Assets (JE) Limited, a Jersey company. Kraken is one of several platforms that distribute them, and a given Kraken account may offer fewer assets than the full xStocks range.

Trading and onchain use

xStocks are backed 1:1 by underlying securities held in custody. Fractional purchases start at $1 on Kraken. Eligible users can withdraw to compatible wallets and use supported tokens in DeFi, including as collateral. Some assets trade 24/7 on Kraken Pro; others trade 24/5. Onchain trading can continue over weekends, but execution still requires liquidity. Supported networks and assets vary by platform.

Dividends and costs

Dividends are reinvested and reflected through a multiplier that adjusts the displayed holding; they are not ordinary cash dividends paid to shareholders. Costs depend on how the order is placed. On Kraken, buying with USD or USDG carries no trading fee, but the price may include a spread, other funding assets incur standard Instant Buy fees, and converting xStocks costs a fixed 1%.

Other tokenized stock products
Product	Structure and use	Key distinction
xStocks	Backed-issued tokens usable across exchanges, wallets and supported DeFi applications.	Self-custody of the token gives no ownership of, or voting rights in, the underlying shares.
Ondo Stocks	Ondo Stocks, formerly Ondo Global Markets, offers tokens backed by securities and cash in transit.	Eligible non-US investors can use wallets and DeFi. Minting/redemption is generally 24/5, with selected assets available 24/7; access and exceptions apply.
Robinhood Stock Tokens	The Robinhood Chain version consists of transferable ERC-20 debt securities issued by Robinhood Assets (Jersey) Limited.	It differs from Classic Stock Tokens, which are contracts with Robinhood Europe and cannot currently leave that platform. On the onchain version, only authorized participants can mint or redeem, and only within a weekday tokenization window; supported trading sessions vary by asset.

Rights and practical limits

Neither 1:1 backing nor common ownership with Kraken guarantees repayment or liquidity. Investors face stock-price, issuer and custodian risks as well as technology and blockchain risks, including smart contracts, and may lose their investment. Eligibility is regional: Kraken’s FAQ excludes the US and US persons, the UK, Canada, Australia and sanctioned jurisdictions, and notes that xStocks are not available in Japan. Before buying, check the specific token’s terms, redemption route, supported network and total quote. Investors who want voting rights and cash dividends need to hold the shares themselves, for example through a conventional broker.

Sources

KRAKEN REFERRAL CODE 2026

Product	Trading Rebate
Spot Trading	20%
Margin Trading	20%
Futures	20%
Tokenized Equity	20%
PTL Trading	20%
Prop, first purchase	20%
Rollover	20%
Options	20%

Create Kraken account

Available rewards are confirmed during registration.

We may earn a commission when you use this link, at no extra cost to you. Terms and regional restrictions apply.