Key Insights:
- Kraken and Backed launched xStocks on BNB Chain, enabling 24/7 trading of tokenized U.S. equities like Apple and Tesla.
- BNB Chain joins the xStocks Alliance, supporting over 60 tokenized equities and ETFs as BEP-20 tokens.
- xStocks recorded $32.8 million in on-chain trading volume, with Kraken planning deeper DeFi integrations.
Kraken’s latest move to expand tokenized equities onto BNB Chain signalled a shift in how traditional assets may operate in decentralized finance. With 24/7 trading, lower fees, and seamless DeFi integration, the partnership raised speculations that blockchain networks may soon rival Wall Street in equity market infrastructure.
Kraken and Backed Extend xStocks to BNB Chain
On July 9, crypto exchange Kraken confirmed its partnership with Backed and BNB Chain to expand xStocks, a tokenized equities offering that brings public company shares onto blockchain rails.
Consequently, this integration will enable users outside the U.S. to deposit and withdraw tokenized U.S. equities. This includes Apple’s AAPLx and Tesla’s TSLAx, as BEP-20 tokens.
The development followed the earlier debut of xStocks on Solana and Kraken’s centralized platform. The new phase on BNB Chain represents an effort to integrate traditional assets into decentralized finance frameworks.
BNB Chain’s low fees, fast transaction speed, and broad accessibility were cited by both firms as reasons for choosing the network. With this move, tokenized stocks become transferrable across both centralized and decentralized infrastructures, potentially reducing settlement friction.
BNB Chain Joins the xStocks Alliance
BNB Chain, operated by one of the largest ecosystems in crypto by user count and total value locked, has now joined the xStocks Alliance. It is an alliance comprising several trading platforms and DeFi protocols that make available tokenized shares of United States stocks and exchange-traded funds (ETFs).
So far, more than 60 tokenized equities and exchange funds can be exchanged as BEP-20 tokens in the partner networks.
The tokenization of stocks, including SPYx (S&P 500 ETF), TSLAx (Tesla), and AAPLx (Apple), grants access to the traditional stocks in crypto-native settings. These tokens are issued and maintained by Backed Finance under a controlled and regulated process to maintain asset backing..
Moreover, Kraken’s participation enabled centralized exchange users to move tokenized equities onto BNB Chain, which supports composability with DeFi tools. The alliance now includes players like Kraken, Bybit, Solana-based protocols, Bitget, and others.
xStocks On-Chain Volume Poised for Growth
Nonetheless, on-chain volume on xStocks was low, despite more listings and network backing. A Dune Analytics dashboard showed that xStocks had around $32.8 million in total on-chain trade volume since its inception.
More so, Kraken will further extend its integration with DeFi by enabling customers to take advantage of tokenized equities as collateral in borrowing and lending programs. Backed co-founder Adam Levi stressed that xStocks can potentially become composable financial primitives that can be used with on-chain derivatives, liquidity pools, and yield-generating strategies.
While current volumes are modest compared to traditional equity markets, the infrastructure now exists for these instruments to function 24/7. With an increased rate of adoption, tokenized equities can evolve into a part of broader DeFi systems.
Kraken Targets Global Retail Access to Equities
Kraken’s expansion to BNB Chain is part of a broader effort to make tokenized equities accessible to global retail markets. According to Kraken Co-CEO Arjun Sethi, tokenized equities are more than digital representations.
Notably, they are programmable primitives suited for internet-native finance. By leveraging BNB Chain’s presence in Southeast Asia and Latin America, Kraken intends to reach markets where access to traditional stock markets is limited.
Besides, the BNB Chain network is well established to make throughput and Ethereum Virtual Machine (EVM) compatible, easing deployment and integration by developers and platforms. According to Sarah Song, BNB Chain Head of Business Development, the partnership expands access to financial products on blockchain infrastructure.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
