Kraken, Backed Bring Tokenized Equities Offering to Ethereum Mainnet
Crypto trade Kraken and Swiss tokenization agency Backed mentioned on Tuesday they’re bringing xStocks, a set of tokenized equities, to the Ethereum community, aiming to combine stcoks into decentralized finance (DeFi) infrastructure.
The initiative permits eligible Kraken purchasers to deposit and withdraw xStocks straight on Ethereum, the place they’ll exist as ERC-20 tokens absolutely collateralized 1:1 by underlying equities. Meaning traders can transfer tokenized shares and ETFs between the trade and self-custodial wallets whereas accessing Ethereum-based decentralized finance (DeFi) protocols.
The rollout on Ethereum follows earlier xStocks launches on Solana, BNB Chain, and TRON. Since its debut in June, the product has generated over $3.5 billion in mixed buying and selling quantity throughout centralized and decentralized exchanges.
Ethereum’s place as the biggest sensible contract community offers xStocks speedy attain throughout hundreds of decentralized functions.
“Our multi-chain technique is deliberate,” Kraken co-CEO Arjun Sethi mentioned in an announcement. “It ensures tokenized equities are accessible throughout ecosystems, transportable between wallets and protocols and composable inside the functions customers already belief. Ethereum is the subsequent logical step.
The transfer comes as momentum grows for bringing conventional monetary devices together with equities onto blockchain rails, often known as tokenization of real-world belongings. Crypto exchanges like Gemini and Robinhood have already launched tokenized U.S. shares for EU customers. Nonetheless, tokenized fairness choices additionally drew considerations reminiscent of restricted shareholder rights and fragmented laws.
Learn extra: Tokenized Shares Aren’t Working (But)
