Kraken Expands xStocks to Hong Kong, the UK, and South Korea

Through GTN, Kraken parent Payward first wants to tokenize Hong Kong stocks, with British, European, and South Korean securities possibly coming later. The move increases competition with Robinhood and Coinbase in tokenized equities.

Key Takeaways

• Kraken wants to use xStocks to give investors access to Hong Kong stocks, followed by British, European, and South Korean stocks once the approvals are in place.
• The expansion runs through GTN, which handles execution, custody, and recordkeeping for the underlying securities.
• The tokenized stocks market is growing fast, while Kraken says xStocks already supports more than 500 tokenized securities and has processed over $35 billion in trading volume.

Payward, the company behind crypto exchange Kraken, is pushing its tokenized stocks product beyond the U.S. Through xStocks, the firm plans to open access to Hong Kong stocks first. If the necessary approvals are secured, British, European, and South Korean stocks could be next.

Expansion Into Multiple Markets

The rollout is being handled through investment infrastructure provider GTN, which takes care of execution, custody, and recordkeeping for the underlying securities. Payward says the partnership also creates a path for xStocks to eventually move into other tokenized asset classes.

Mark Greenberg, global head of Payward Services, said most of the asset class that has yet to be tokenized sits outside the U.S. In other words, Payward is aiming to bring traditional markets onchain piece by piece, starting with one jurisdiction and then moving to the next.

Competition for Tokenized Stocks

The timing matters, because competition in tokenized equities is picking up quickly. Robinhood expanded its tokenized stock offering beyond European users earlier this month, and Coinbase is also building stock tokens. Meanwhile, firms like DTCC are testing tokenized securities infrastructure, while Nasdaq and the New York Stock Exchange have each launched their own tokenization efforts.

The market for tokenized stocks is expanding fast. Citi estimates the broader tokenized asset market could rise from about $17 billion (€14.9 billion) today to $5.5 trillion (€4.8 trillion) by 2030, with public market investments and liquid collateral expected to lead the early wave of adoption. For crypto-native investors, that is important because tokenization brings traditional markets closer to blockchain rails without settling the long-running questions around issuance and custody. It also fits into a wider trend in which tokenization and real-world assets are drawing more attention from Web3 builders and investors.

Why This Matters

For European crypto readers, this move is a reminder that tokenized equities are no longer limited to U.S. names like Nvidia, Apple, and Tesla. If Hong Kong, the UK, Europe, and South Korea are eventually added, the range of onchain investment products could expand significantly and keep the discussion around market infrastructure and regulation moving forward. xStocks already supports more than 500 tokenized securities and, according to Payward, has handled more than $35 billion (€30.7 billion) in trading volume, which suggests this market is already well past the experimental stage.