Kraken has officially launched its "xStocks" platform in Europe. This innovative product now allows users to trade tokenized US stocks and ETFs with minimal barriers to entry. This not only opens up a new financial gateway for European investors but also signals a new phase in the integration of blockchain and traditional finance.
What is xStocks? A tokenized way to trade stocks
xStocks is a tokenized stock product that allows users to buy and sell tokens that track the market prices of popular US stocks and ETFs. These tokenized certificates are pegged 1:1 to actual shares and are issued on the blockchain using the SPL or BNB protocols. Unlike traditional stocks, xStocks, while allowing participation in price fluctuations, do not confer shareholder rights such as voting rights or dividends. However, users can still trade and transfer assets through the Kraken platform or supported third-party wallets.
Who can trade xStocks?
Currently, xStocks is only available to Kraken clients residing in the EU who have passed a suitability assessment or qualify as a professional investor. The service is provided by Payward Europe Digital Solutions (CY) Limited (PEDSL), which is regulated by the Cyprus Securities and Exchange Commission (CySEC).
Please note that xStocks is not available in the United States or to U.S. residents and will not be registered under the U.S. Securities Exchange Act.
Investable assets: 60 popular stocks and ETFs are provided in the first wave
Kraken xStocks launched with an initial offering of 60 assets, including 55 US stocks and five ETFs. Well-known companies such as Tesla (TSLAx), Apple (AAPLx), NVIDIA (NVDAx), Google (GOOGx), and GameStop (GMEx) are now listed. This allows European investors to participate in the world's most talked-about stock market on a single platform for the first time.
Support 24/5 trading, weekend trading will be available soon
Unlike traditional stock markets, xStocks supports 24/5 trading hours, offering greater flexibility in entry and exit points. Kraken stated that weekend trading functionality is also in development, with plans to expand to a 24/7 trading experience in the future.
The minimum investment is only 1 Euro! Split purchases are also supported
You read that right, xStocks supports "fractional share" purchases, and users can start investing with a minimum amount of €1. It is especially suitable for novices or small-income groups to diversify risks and make small investments.
Fees and quotation mechanism: No fees for purchases in USD
If you purchase xStocks using USD, you enjoy a fee-free transaction. If you trade other assets, you'll be charged Kraken's standard instant buy/sell rates. Additionally, each trade price includes a spread to lock in your quote.
Self-management and withdrawal function: xStocks can be withdrawn to blockchain wallet
Kraken supports self-custody for xStocks, allowing users to withdraw tokens to compatible blockchain wallets, manage their assets independently, and improve security and controllability.
Can I receive dividends from xStocks? Yes, but not in cash.
Although xStocks does not provide cash dividends, if the underlying stock has a dividend, the proceeds will be automatically reinvested in the same xStock form, which means increasing your holdings.
xStocks Security and Transparency: Reserved and Audited by Backed
xStocks' tokens are issued by a third-party institution, Backed Assets (JE) Limited, and are fully backed by reserves and audit reports. Kraken emphasizes that its blockchain-based infrastructure combines high security and transparency to safeguard user assets.
Can xStocks be converted into other assets or native stocks?
Currently, xStocks does not support direct exchange for real stocks. If users want to change the underlying asset, they need to first sell xStocks and exchange them for USD, and then purchase other assets.
Can xStocks be resold? Absolutely!
Users can sell their xStock holdings at any time in the Kraken app and exchange them for USD assets. Users can also withdraw their xStock to other supported third-party platforms for over-the-counter trading or redemption.
Kraken xStocks will revolutionize the traditional investing experience
The launch of xStocks represents Kraken's commitment to reinventing how retail investors participate in global financial markets. By leveraging blockchain and tokenization technologies, users gain greater flexibility and access to the world's largest market with even smaller amounts of capital.
The article Kraken launches "xStocks" to enter the European market: Buy US stock tokens with 1 euro first appeared in ABMedia ABMedia .
