Crypto Exchange Kraken and Swiss Tokenization Firm said on Tuesday that they will bring XStocks, a suite of tokenized stocks, to the Ethereum Network, with the aim of integrating STCOK into their distributed financial (DEFI) infrastructure.
This initiative allows qualified Kraken clients to withdraw Xstocks directly with Ethereum. There, the ERC-20 token exists as a 1:1, fully secured by the underlying stock. This means that investors can move tokenized stocks and ETFs between exchanges and independent wallets while accessing Ethereum-based distributed finance (DEFI) protocols.
The Ethereum deployment follows the previous Xstocks launches at Solana, BNB Chain and Tron. Since its debut in June, the product has generated more than $3.5 billion in trading volumes across centralized and decentralized exchanges.
With Ethereum's position as the largest smart contract network, XStocks instantly reaches thousands of distributed applications.
“Our multi-chain strategy is intentional,” Kraken co-CEO Arjun Sethi said in a statement. “Tokenized stocks are portable between the wallet and the protocol, allowing users to access the entire ecosystem, which is already configurable within a trusted application. Ethereum is the next logical step.
This move is due to the growing momentum of bringing traditional financial products, including stocks, to the blockchain rail, also known as tokenization of real-world assets. Crypto exchanges like Gemini and Robinhood have already introduced tokenized US stocks for EU users. However, the provision of tokenized shares also raised concerns such as limited shareholder rights and fragmented regulations.
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