TLDR
- Kraken and Backed are launching xStocks (tokenized equities) on Ethereum as ERC-20 tokens
- This follows earlier deployments on Solana, BNB Chain, and TRON that have generated $3.5B in trading volume
- Eligible Kraken clients can deposit and withdraw tokenized stocks directly on Ethereum
- Tokens are fully collateralized 1:1 by underlying equities
- The expansion aims to integrate traditional stocks with Ethereum’s DeFi ecosystem
Kraken, a major cryptocurrency exchange, and Backed, a Swiss tokenization company, announced on Tuesday they are expanding their xStocks tokenized equities offering to the Ethereum blockchain. This strategic move allows the tokenized stocks to exist as ERC-20 tokens on Ethereum, the world’s largest smart contract network.
The xStocks product enables eligible Kraken users to deposit and withdraw tokenized stocks and ETFs directly on Ethereum. These digital tokens are fully backed by real equities at a 1:1 ratio, maintaining their value relationship with the underlying assets.
Hello, Ethereum.
xStocks are coming to Ethereum Mainnet, one of the world’s largest and most reputable blockchains with over $500b in assets secured, millions of users and thousands of apps.
The standard for tokenized equities, going everywhere. pic.twitter.com/ScEiBaHG1h
— xStocks (@xStocksFi) September 2, 2025
A key benefit of this expansion is that investors can now move these tokenized stocks between the exchange and self-custodial wallets. This gives users greater control over their assets while also allowing them to access Ethereum’s vast decentralized finance (DeFi) ecosystem.
Growing Momentum for Real-World Asset Tokenization
The expansion to Ethereum follows xStocks’ previous launches on other blockchain networks including Solana, BNB Chain, and TRON. Since its initial debut in June, the product has seen major adoption, generating over $3.5 billion in combined trading volume across both centralized and decentralized exchanges.
This move is part of a larger trend in the cryptocurrency industry that focuses on bringing traditional financial instruments onto blockchain technology. Other major players like Gemini and Robinhood have also introduced tokenized U.S. stocks for European users, showing growing interest in this concept.
Kraken co-CEO Arjun Sethi explained the strategy behind supporting multiple blockchains: “Our multi-chain strategy is deliberate. 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.”
Expanding Market Access and Functionality
By bringing tokenized stocks to Ethereum, Kraken and Backed gain immediate access to thousands of decentralized applications. This substantially increases the potential utility and reach of xStocks in the broader cryptocurrency ecosystem.
The Ethereum integration allows these tokenized equities to interact with the network’s DeFi protocols. This means users could potentially use their tokenized stocks for lending, borrowing, or as collateral in various financial applications built on Ethereum.
For many traders, this bridges a gap between traditional finance and the cryptocurrency world. It allows investment in familiar equities while leveraging the flexibility, programmability, and 24/7 trading capabilities of blockchain technology.
However, the tokenization of stocks is not without challenges. Concerns have been raised about limited shareholder rights compared to traditional equity ownership. There are also regulatory complexities as different jurisdictions have varying approaches to tokenized securities.
The rollout on Ethereum represents the next phase in what appears to be a deliberate multi-chain expansion strategy. By supporting various blockchain networks, Kraken and Backed are working to make tokenized equities accessible to a wide range of cryptocurrency users regardless of their preferred blockchain ecosystem.
The expansion to Ethereum follows the success xStocks has already achieved on other networks. With $3.5 billion in trading volume since June, the product has demonstrated user interest in bridging traditional finance and cryptocurrency markets.
The latest move by Kraken and Backed reflects the growing trend of bringing real-world assets onto blockchain technology, often referred to as tokenization.
The post Kraken and Backed Launch Tokenized Stocks on Ethereum as ERC-20 Tokens appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
All rights reserved to : USAGOLDMIES . www.usagoldmines.com
You can Enjoy surfing our website categories and read more content in many fields you may like .
Why USAGoldMines ?
USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.