In a groundbreaking move bridging traditional finance and blockchain technology, Kraken, a leading cryptocurrency exchange, has partnered with Backed Finance (BackedFi) to introduce tokenized U.S. equities to non-U.S. markets. This collaboration allows global users to access major American stocks and exchange-traded funds (ETFs) through digital assets. It offers 24/7 trading capabilities and addresses long-standing inefficiencies in traditional financial systems.
A New Era of Accessible and Efficient Financial Markets
This initiative marks a significant step toward democratizing access to U.S. equities for international investors. By leveraging tokenization, Kraken and BackedFi aim to tackle common challenges faced in traditional finance. The challenges include limited trading hours, high fees, and restricted global reach.
Tokenized versions of over 50 popular U.S. stocks and ETFs, including giants like Apple, Tesla, and Nvidia, will be launched on the Solana blockchain. Known for its fast transactions, low fees, and robust user community, Solana provides an ideal infrastructure for this innovation. Unlike traditional stock exchanges, which operate within fixed hours, Solana enables trading around the clock. This empowers users to engage with financial markets at their convenience.
“Access to U.S. equities has long been slow, costly, and limited for many people,” said Mark Greenberg, Global Head of Consumer at Kraken.
“With this collaboration, Kraken is providing users with an easier, quicker, and more transparent method to access financial markets.”
Introducing xStocks: A Game-Changing Innovation
At the heart of this partnership is xStocks, a new brand under BackedFi designed to offer crypto platforms tokenized exposure to U.S. equities. Kraken is the first platform to support xStocks. This marks a pivotal moment in the convergence of traditional and decentralized finance (DeFi).
Unlike traditional stock investing, tokenized equities operate continuously, are accessible globally, and integrate seamlessly into the DeFi ecosystem. This flexibility positions them as a preferred choice for both crypto enthusiasts and traditional investors seeking modern solutions.
Adam Levi, co-founder of BackedFi, emphasized the transformative potential of this initiative:
“Through Kraken and Solana Foundation, fiat money and DeFi can work side by side. xStocks provide firm, consistent value across multiple networks and platforms, making them a versatile tool for a wide range of users.”
Levi envisions tokenized equities playing a central role in driving mainstream adoption of blockchain-based financial systems.
Solana’s Role in Revolutionizing Financial Inclusion
The Solana Foundation has played a crucial role in enabling this integration. Amelia Daly, Head of Partnerships at Solana Foundation, expressed her enthusiasm for the project:
“Trading tokenized U.S. stocks on the Solana blockchain is proof that investing is moving toward inclusion, independence, and global reach. Solana’s scalable infrastructure is perfectly suited to support innovative ideas like this.”
As one of the fastest-growing blockchains, Solana’s high-performance network ensures seamless trading experiences while maintaining low costs—a critical factor for widespread adoption.
Expanding Kraken’s Reach in Traditional Finance
This development comes shortly after Kraken introduced trading for thousands of U.S.-listed stocks and ETFs to its American users. By expanding its offerings globally, Kraken is solidifying its position as a leader in bridging the gap between crypto and traditional financial services.
The introduction of tokenized equities not only enhances accessibility but also fosters greater transparency and efficiency in financial markets. For international users, this innovation eliminates barriers such as time zone differences. It also removes restrictive trading windows, making it easier than ever to invest in top-tier U.S. companies.
The Future of Tokenized Equities
As Kraken and BackedFi explore new platforms to expand this investment strategy, the potential for tokenized equities to reshape global finance becomes increasingly evident. These digital assets represent a paradigm shift in how individuals interact with financial markets. They offer a more inclusive, transparent, and internet-native approach to investing.
By combining the strengths of blockchain technology with the stability of traditional equities, this initiative paves the way for broader adoption of decentralized finance. Looking ahead, tokenized equities could become a cornerstone of modern financial systems. They appeal to both institutional and retail investors worldwide.
Final Thoughts
The partnership between Kraken and BackedFi, powered by the Solana blockchain, represents a monumental leap forward in integrating traditional finance with blockchain technology. By introducing tokenized U.S. equities to non-U.S. markets, this collaboration addresses longstanding inefficiencies. It opens doors to a more inclusive financial future.
