%Cryptocurrency exchange %Kraken plans to list tokenized shares of %Nvidia (NASDAQ: $NVDA), %Apple (NASDAQ: $AAPL), %Tesla (NASDAQ: $TSLA), and over 50 other U.S. stocks and exchange-traded funds (ETFs).
The tokens, which will be deployed on the %Solana (CRYPTO: $SOL) blockchain, will be listed under the name “xStocks” and be available to trade 24 hours a day, seven days a week for investors worldwide.
Some of the ETFs that will be available to trade include the SPDR S&P 500 ETF (SPY), which tracks the benchmark S&P 500 index, and SPDR Gold Shares (GLD) that holds bullion.
The stocks will be represented by real shares held by Backed Finance and can be redeemed 1:1 for their cash value.
Tokenization is the process of turning real-world assets such as stocks into blockchain tokens.
Kraken previously announced the rollout on its exchange of over 11,000 U.S.-listed stocks and ETFs in April of this year.
This latest announcement expands Kraken’s offering to include tokenized versions of over 50 popular stocks and ETFs to customers outside of the U.S., including in Europe and Asia.
The move puts Kraken in direct competition with platforms such as %Robinhood Markets (NASDAQ: $HOOD) and makes it the first exchange to successfully offer tokenized shares of major U.S. securities.
Rival crypto exchange %Binance attempted to launch tokenized U.S. stocks in 2021 but canceled its plans due to regulatory issues.
Kraken says now is the right time to launch tokenized versions of stocks as the regulatory environment pertaining to crypto has eased around the world.
%Bitcoin (CRYPTO: $BTC), the largest cryptocurrency by market capitalization, recently hit a new all-time high above $111,000 U.S. and is currently trading at $108,750 U.S. per digital token.
