TLDR
- Kraken and Backed Finance launched 60 tokenized stocks on Ethereum including Nvidia, Tesla, Amazon, and Meta
- Platform previously generated $3.5 billion trading volume across Solana, BNB Chain, and Tron networks
- Tokens are ERC-20 format, backed 1:1 by real stocks, and work with Ethereum DeFi protocols
- Tokenized stock market worth $342 million, just 1.2% of the $27.9 billion tokenized asset market
- Regulatory concerns continue over investor protections and voting rights for tokenized equities
Cryptocurrency exchange Kraken partnered with Swiss firm Backed Finance to launch xStocks on Ethereum Tuesday, bringing 60 major company stocks to the blockchain. The tokenized equities include tech giants Nvidia, Tesla, Amazon, Meta, and retail leader Walmart.
The new tokens follow the ERC-20 standard and maintain 1:1 backing by actual company shares. Kraken users can move these digital stocks between the exchange and personal wallets while accessing Ethereum’s decentralized finance ecosystem.
XStocks previously operated on three other blockchains: Solana, BNB Chain, and Tron. Since launching in June 2025, the platform recorded over $3.5 billion in combined trading volume across centralized and decentralized exchanges.
Ethereum DeFi Integration Expands Access
Ethereum hosts the largest decentralized finance network with $90.8 billion in total value locked. This represents 60% of all blockchain DeFi activity, making it the natural next step for tokenized stock expansion.
“Ethereum is one of the world’s most widely adopted smart contract networks ā and xStocks were built to meet users where they already are,” a Kraken representative explained. The integration allows tokenized stocks to work with thousands of existing Ethereum applications.
Kraken co-CEO Arjun Sethi emphasized the multi-chain approach. “It ensures tokenized equities are accessible across ecosystems, portable between wallets and protocols and composable within the applications users already trust,” he stated.
The tokenized stock sector continues growing as traditional finance meets blockchain technology. Gemini introduced tokenized stock trading on Ethereum in June 2025. Robinhood launched its own blockchain for European tokenized stock trading on June 30.
Market Size and Regulatory Challenges
Current tokenized stock market capitalization reaches $342 million according to RWA.xyz analytics. This represents a small fraction of the broader tokenized real-world asset market valued at $27.9 billion.
Legal experts warn that tokenized stocks may not provide the same protections as traditional share ownership. Investors might lack voting rights and direct claims on company assets through tokenized versions.
Global regulators and stock exchanges continue pushing for stricter oversight from the Securities and Exchange Commission. The legal framework for tokenized equities remains unclear across many jurisdictions.
Despite regulatory uncertainty, crypto and fintech companies keep expanding tokenized offerings. EToro is exploring tokenized stock launches on Ethereum following the recent market activity.
Backed Finance has established partnerships with multiple exchanges including Bybit to distribute tokenized products. The Swiss company specializes in creating blockchain representations of traditional financial assets.
The Ethereum launch positions xStocks to tap into the network’s established DeFi infrastructure and user base.
