Kraken parent company Payward launches tokenized global stock trading through xStocks

Key Highlights

Contents

Key Highlights

International expansion marks a new stage for xStocks. Payward introduced tokenized Hong Kong stocks into the xStocks platform and launched an international development roadmap.

The platform will surpass the U.S. market and target UK, EU and South Korean securities. Through strategic cooperation with GTN, blockchain-based access to global stock market transactions will be achieved.

As traditional finance embraces blockchain technology, the tokenized asset ecosystem continues to grow. The expansion of the international market has paved the way for xStocks to develop a broader tokenized securities.

Kraken parent company Payward announced a major international expansion of its xStocks platform, extending from U.S. stocks to Hong Kong tokenized stocks. The company has partnered with GTN and plans to further expand into markets such as the UK, EU countries and South Korea after obtaining necessary regulatory approvals. This strategic move marks an important step in realizing global access to traditional financial instruments through blockchain technology.

International expansion marks a new phase for xStocks

Payward revealed its strategy to expand the xStocks ecosystem: through a partnership with investment infrastructure specialist GTN to include tokenized shares of the Hong Kong Stock Exchange. The ambitious expansion blueprint covers securities in the UK, continental Europe and South Korea. Entry into each market requires approval from the local financial regulatory authority before it can be implemented.

This international expansion is a major shift from xStocks 'initial focus on U.S. listed stocks and exchange-traded funds. The plan aims to provide access to diversified investment portfolios for the stocks of more listed companies around the world through blockchain technology. In addition, Payward expressed its intention to expand tokenization capabilities to alternative asset classes other than traditional stocks.

chose GTN as a partner to provide xStocks with execution services, custody solutions and record-keeping infrastructure for the securities that support these tokenization tools. GTN's mature network covers more than 90 international financial markets. After obtaining regulatory authorization, the platform will also be open to institutional investors.

Building a comprehensive tokenized securities infrastructure

xStocks was launched by Kraken and Backed to provide tokenized representation for U.S. stocks and exchange-traded funds. Each digital token corresponds to the actual stock held in the compliance custodian. Blockchain infrastructure supports round-the-clock continuous transfer and transaction capabilities.

The platform was originally deployed on the Solana blockchain network and provided 60 tokenized U.S. securities and ETFs when launched. Since then, the ecosystem has experienced significant growth and now covers nearly 500 tokenization tools. According to Payward, xStocks has attracted more than 100 ecosystem partners, facilitated more than $35 billion in transaction volume, and accumulated nearly 200,000 token holders.

Future development plans include the inclusion of commodities, pre-market investment opportunities, and professional execution tools specifically designed for institutional participants. Payward aims to integrate collateral functions and enhance the supply of round-the-clock liquidity. These enhancements will significantly expand blockchain access beyond traditional publicly traded stocks.

Tokenized securities attract mainstream financial attention

Payward's international expansion coincides with the growing popularity of tokenized securities across financial markets. Robinhood recently expanded its tokenized stock products beyond its European customer base. Coinbase has publicly announced plans to launch blockchain-based stock token products.

Mature market infrastructure operators have also accelerated their tokenization initiatives in the past year. DTCC has tested systems designed to support tokenized securities within existing market frameworks. Both Nasdaq and the New York Stock Exchange have each promoted independent blockchain-oriented market development projects.

Industry analysts expect tokenization to improve the settlement process and enable continuous transactions across international time zones. Citi predicts that by 2030, the valuation of the tokenized securities market could reach US$5.5 trillion. In this forecast, tokenized stocks are expected to account for approximately US$2.6 trillion, highlighting the growing importance of solutions like xStocks and similar blockchain in promoting democratic access to international financial markets.

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