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The expansion of xStocks aims to integrate tokenized stocks with Ethereum’s vast DeFi ecosystem., the firms said.
By Krisztian Sandor, AI Boost|Edited by Stephen Alpher
Sep 2, 2025, 2:19 p.m.
- Kraken and Backed is bringing tokenized equities dubbed xStocks on Ethereum as ERC-20 tokens.
- The move builds on xStocks’ $3.5 billion trading volume across Solana, BNB Chain and TRON.
- The initiative is part of a broader trend of bringing traditional financial instruments onto blockchain rails.
Crypto exchange Kraken and Swiss tokenization firm Backed said on Tuesday they are bringing xStocks, a suite of tokenized equities, to the Ethereum network, aiming to integrate stcoks into decentralized finance (DeFi) infrastructure.
The initiative allows eligible Kraken clients to deposit and withdraw xStocks directly on Ethereum, where they will exist as ERC-20 tokens fully collateralized 1:1 by underlying equities. That means investors can move tokenized stocks and ETFs between the exchange and self-custodial wallets while accessing Ethereum-based decentralized finance (DeFi) protocols.
STORY CONTINUES BELOW
The rollout on Ethereum follows earlier xStocks launches on Solana, BNB Chain, and TRON. Since its debut in June, the product has generated over $3.5 billion in combined trading volume across centralized and decentralized exchanges.
Ethereum’s position as the largest smart contract network gives xStocks immediate reach across thousands of decentralized applications.
“Our multi-chain strategy is deliberate,” Kraken co-CEO Arjun Sethi said in a statement. “It ensures tokenized equities are accessible across ecosystems, portable between wallets and protocols and composable within the applications users already trust. Ethereum is the next logical step.
The move comes as momentum grows for bringing traditional financial instruments including equities onto blockchain rails, also known as tokenization of real-world assets. Crypto exchanges like Gemini and Robinhood have already introduced tokenized U.S. stocks for EU users. However, tokenized equity offerings also drew concerns such as limited shareholder rights and fragmented regulations.
Read more: Tokenized Stocks Aren’t Working (Yet)
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
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By Krisztian Sandor, AI Boost|Edited by Stephen Alpher
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The tokenized gold structure lets U.S. retirement investors earn yield on crypto protocols while keeping tax advantages.
What to know:
- SmartGold teamed up with Chintai Nexus to allow U.S. IRA accounts to tokenize their gold holdings and earn yield on crypto protocols.
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