Tesla, Nvidia, and Other Stocks Tokenized by Major US Crypto Exchange Kraken: Details

Kraken Pioneers Tokenized Stocks, Opening U.S. Market to Global Investors

Kraken, one of the leading cryptocurrency exchanges in the United States, is poised to transform investment accessibility with the introduction of "xStocks" – tokenized versions of shares from top U.S. companies like Apple, Nvidia, and Tesla. According to the Wall Street Journal, this initiative seeks to make the thriving U.S. stock market more accessible to international investors.

xStocks will enable global investors to bypass costly local brokerages and directly engage with the U.S. stock market. Each token will represent a single share, supporting fractional ownership and allowing retail investors to participate with smaller capital amounts.

Kraken will fully collateralize these tokens with the actual underlying stocks, ensuring transparency and security for investors. The exchange plans to provide exposure to over 50 U.S. stocks and ETFs, broadening investment opportunities.

While the concept isn't entirely novel—Binance previously attempted tokenized stocks in 2021 before discontinuing them due to regulatory challenges—Kraken's move signals a renewed push to bridge traditional finance and cryptocurrency. This development highlights the industry's ongoing evolution and the growing convergence of digital assets with conventional markets.

Key Highlights:

• Kraken introduces "xStocks," tokenized versions of U.S. stocks
• Designed to expand global access to the U.S. stock market
• Tokens represent single shares with fractional ownership options
• Fully backed by underlying stocks for security
• Over 50 U.S. stocks and ETFs available for investment
• Follows Binance's earlier attempt but with a fresh regulatory strategy