xStocks is Kraken's tokenized equities platform offering 60 U.S. stocks and ETFs as on-chain tokens. Since launching in May 2025, xStocks has surpassed $20 billion in total trading volume with 37,000+ unique holders across 160+ countries, making it the dominant platform in the tokenized equities space.
xStocks tokens are SPL tokens on Solana, each backed 1:1 by the actual underlying stock or ETF held in a bankruptcy-remote custody structure. The platform launched through Kraken's partnership with Backed Finance, which Kraken subsequently acquired in December 2025.
| Token | Underlying | Market Cap |
|---|---|---|
| NVDAx | NVIDIA | $123M |
| TSLAx | Tesla | $71M |
| AAPLx | Apple | $10.6M |
| GOOGLx | Alphabet | ~$8M |
| MSFTx | Microsoft | — |
| MSTRx | MicroStrategy | — |
| GMEx | GameStop | — |
| COINx | Coinbase | $1.9M |
| GLDx | SPDR Gold | $7.2M |
| QQQx | Nasdaq-100 ETF | — |
Zero trading fees when purchasing with USDG or USD. $1 minimum investment for fractional access. 24/5 trading on Kraken (Monday-Friday), with 24/7 on-chain trading when withdrawn to a self-custody wallet. Instant settlement — no T+2 wait. Self-custody — withdraw to any compatible Solana wallet. Auto-reinvested dividends — your token balance increases automatically.
In February 2026, Kraken launched xStocks on Deutsche Börse's 360X regulated marketplace. This brings institutional-grade European exchange infrastructure to tokenized equities, enabling qualified participants to trade xStocks in a fully regulated environment.
xStocks not available to US persons. See Disclaimer.
xStocks launched in May 2025 through Kraken's partnership with Backed Finance AG, a Switzerland-based tokenization specialist. The platform's growth has been extraordinary by any measure: $10 billion in total trading volume within the first six months, scaling to $20+ billion by early 2026. This velocity exceeds the early growth trajectories of fractional share platforms like Robinhood and eToro when adjusted for market size.
The December 2025 acquisition of Backed Finance by Kraken consolidated the most successful tokenized equity issuer with the most active trading platform. This vertical integration — combining issuance, custody, and exchange functionality — mirrors the traditional finance model where exchanges like NYSE and Nasdaq integrate listing, trading, and settlement. The acquisition was funded from Kraken's $800 million total funding, which includes investment from Citadel Securities — one of the world's largest market makers.
xStocks trading operates 24/5 (Monday through Friday) on Kraken, with prices tracking the underlying equities' real-time market value via institutional-grade price feeds. Orders execute against Kraken's order book with zero trading fees when using USDG or USD as the settlement currency. Other currency pairs (BTC/NVDAx, ETH/NVDAx) may incur standard exchange fees.
After purchasing tokens on Kraken, users can withdraw to self-custody wallets for 24/7 trading on Solana decentralized exchanges. This hybrid model — centralized exchange for price discovery and liquidity, decentralized exchange for after-hours and weekend trading — represents a novel market structure that doesn't exist in traditional equities.
While xStocks has demonstrated strong growth and institutional backing, investors should understand platform-specific risks. Single-issuer dependency: all xStocks tokens are issued by Backed Finance (now owned by Kraken). If Backed faces regulatory action or operational failure, all 60 tokens could be affected simultaneously. Exchange risk: tokens held on Kraken are subject to exchange custody risk. Regulatory risk: changes in securities regulations across the 160+ countries where xStocks operates could restrict or prohibit trading. Liquidity concentration: while NVDAx has $123M market cap, many smaller xStocks tokens have thin liquidity that could make exit difficult at desired prices.
These risks are partially mitigated by Kraken's regulatory compliance (licensed in multiple jurisdictions), Backed Finance's Swiss DLT Act framework, and the Deutsche Börse 360X integration which adds institutional exchange infrastructure. However, tokenized equities remain a novel product category with limited track record — the oldest xStocks tokens are less than one year old as of February 2026.
xStocks competes not only with other tokenized equity platforms but also with traditional fractional share offerings from Robinhood, eToro, and Interactive Brokers. The comparison reveals distinct advantages and tradeoffs for each approach.
xStocks advantages include: 24/7 trading availability (vs market hours only), self-custody option (vs exchange-only custody), DeFi composability (vs no blockchain integration), 160+ country availability (vs limited geographic reach for US-based brokerages), and zero fees (competitive with Robinhood's zero-commission model). xStocks disadvantages include: no shareholder rights (vs full rights at traditional brokerages), no SIPC insurance (vs $500K protection at US brokerages), newer platform with shorter track record, and exclusion from US, Canada, UK, and Australia markets.
For investors in jurisdictions served by both traditional brokerages and xStocks, the choice depends on priorities: shareholder rights and regulatory protections favor traditional brokerages, while 24/7 access, self-custody, and DeFi integration favor xStocks. For investors in jurisdictions not well-served by traditional brokerages — much of Africa, Southeast Asia, Latin America, and the Middle East — xStocks may be the most accessible path to US equity exposure available.
Understanding the custody chain behind xStocks is critical for evaluating counterparty risk. When you purchase NVDAx on Kraken, Backed Finance (the issuer, now owned by Kraken) acquires the equivalent NVIDIA stock through regulated intermediaries. The stock is held in a bankruptcy-remote custody structure under Swiss DLT Act provisions. Each xStocks token represents a verifiable claim on the underlying share. The token-to-stock ratio is maintained through automated minting and burning mechanisms.
The December 2025 Kraken acquisition of Backed Finance strengthened this custody chain by consolidating the trading platform and token issuer under one entity, backed by Kraken's $800M+ in total funding including investment from Citadel Securities. Deutsche Börse 360X integration adds a second regulated venue, further de-risking the ecosystem.
Platforms like Robinhood and Interactive Brokers also offer fractional shares, but xStocks tokens offer three structural advantages: self-custody (withdraw to your own wallet), DeFi composability (use as collateral, provide liquidity), and true 24/7 on-chain trading when held in self-custody. The tradeoff: no shareholder voting rights, no SIPC insurance, and smart contract risk that traditional brokerages don't carry.