tl;dr
Kraken is expanding its xStocks product to the Binance-backed BNB Chain, allowing users outside the U.S. to deposit and withdraw tokenized U.S. equities like AAPLx, TSLAx, SPYx, and NVDAx as BEP-20 tokens. These tokens, issued by Backed, integrate with DeFi platforms such as PancakeSwap. Co-CEO Arju...
Kraken has announced the expansion of its xStocks product to the Binance-backed BNB Chain, a move aimed at making tokenized US equities more accessible to users worldwide. Starting soon, Kraken users outside the United States will be able to deposit and withdraw tokenized stocks like AAPLx, TSLAx, SPYx, and NVDAx through the BNB Chain. These tokenized assets, issued by Backed, will be deployed as BEP-20 tokens, enabling smooth integration with decentralized finance (DeFi) platforms such as PancakeSwap.
Arjun Sethi, co-CEO of Kraken, emphasized that this expansion supports the company's vision of establishing a "chain-neutral" and "always-on" capital market. He described tokenized equities as "programmable settlement primitives," which allow for instant global transfers and atomic settlements. These tokens also offer composability with on-chain financial products like derivatives and lending protocols, breaking down traditional barriers created by jurisdiction and legacy custodial systems.
This development is part of a larger industry trend toward tokenization. Various crypto-native firms, including Robinhood, and financial heavyweights like BlackRock, have increasingly focused on this space. The Security Token Market projects the tokenization industry to surge to $30 trillion by 2030. Galaxy Digital highlights both opportunities and risks in this growth, pointing out that 24/7 trading models provide constant market access but also increase volatility during off-hours.
The rise of tokenization poses substantial challenges to traditional financial institutions and exchanges such as the NYSE. These legacy platforms, reliant on centralized liquidity and structured trading hours, face pressure from blockchain-based platforms offering real-time trading and decentralized ownership. Consequently, traditional exchanges must innovate to retain market share or risk losing critical revenue streams like trading fees and data sales to emerging decentralized markets.