Kraken, in partnership with Backed Finance, has expanded its token actions offering the Ethereum network, introducing Xstocks under the name of ERC-20 token representing real assets such as actions and ETFs. This decision follows the initial launches of the product on Solana, the BNB and Tron chain, and aims to integrate token actions into the decentralized financial ecosystem (DEFI) decentralized of Ethereum. XSTOCKS, fully guaranteed 1: 1 by underlying actions, allows eligible customers to deposit and remove tokenized actions directly on Ethereum, allowing a transparent movement between auto-custodial wallets and decentralized applications (2).
The XSTOCKS portfolio includes major actions such as Nvidia, Tesla, Apple, Amazon and Walmart, offering investors a diverse range of tokenized assets. The initiative is part of an increasing trend to provide traditional financial instruments on blockchain platforms, taking advantage of Ethereum’s position as the largest network of smart contracts. Monday, Ethereum welcomed $ 90.8 billion of total locked value (TVL), representing 60% of the DEFI market, according to Coindesk (1). Kraken’s multi-chain strategy, as explained by CO-PDG Arjun Sethi, guarantees that tokenized actions are accessible in various blockchain ecosystems, laptops between wallets and protocols, and composable in confidence applications (2).
The deep liquidity of Ethereum and the large user base make it a natural adjustment for the next phase of the expansion of XSTOCKS. Since its inception, XSTOCKS has generated more than $ 3.5 billion in combined trading volume through centralized and decentralized scholarships. The expansion of the product in Ethereum should improve liquidity and provide greater flexibility to investors, which allows them to access the activity on the chain and define protocols directly from their portfolios based on Ethereum (2). Kraken has also stressed the importance of Ethereum as a hub for innovation of intelligent contracts and decentralized finance, making it an essential platform to provide traditional assets on the blockchain infrastructure (3).
Despite the growing interest in token actions, the market remains in a legal gray area. Critics and regulators have raised concerns concerning the limited rights of shareholders and the potential regulatory fragmentation associated with these products. Legal experts have noted that tokenized actions may not offer the same protections as traditional ownership of shares, including voting rights and direct complaints on the company’s assets. In addition, global scholarships and regulators, including Securities and Exchange Commission (SEC) of the United States, have called for a stronger monitoring of token equity (1).
The tokenized equity market, while being at its beginnings, shows signs of growth. Since the latest data from Rwa.xyz, token market capitalization amounts to $ 342 million, which represents only 1.2% of the overall market capitalization of $ 27.9 billion on the real world (RWA). Despite these modest figures, the industry witnesses an important activity, with other exchanges like Gemini and Robinhood which also launch token stock offers. Robinhood, for example, introduced a blockchain to facilitate stock trading in Europe (1). These developments indicate a broader change from the financial industry to solutions based on blockchain.
The expansion of Kraken from Xstocks to Ethereum is a strategic decision that aligns the company’s mission to integrate traditional finances with decentralized infrastructure. The adoption by Ethereum by the platform should attract a wider range of investors and developers, improving the accessibility and programmability of token actions. While the market continues to evolve, the balance between innovation and regulatory clarity will be essential to determine the long -term success of token equity products.
Source:
(1) The tokenized equity product XSTOCKS launches on Ethereum (https://cointelegraph.com/News/xstocks-launches-ethereum-60-tokeniszed- Stocks-nvidia-tesla)
(2) Kraken, supported, bring token actions offering to … (https://www.coindesk.com/business/2025/09/02/kraken-backed-bring-tokenized-equities-frircing-thereum-mainnet)
(3) Kraken brings token actions in Ethereum Blockchain (
