Daily News 19

Tag: Kraken xStocks

  • Kraken’s xStocks Backing Assets Surpass $800 Million as Holders Exceed 300,000

    Kraken’s xStocks Backing Assets Surpass $800 Million as Holders Exceed 300,000

    xStocks Surpasses $800 Million in Tokenised Assets with 300,000+ Unique Holders

    Tokenised equities platform xStocks has crossed a significant milestone, reporting over $800 million in assets backing its tokenised stocks and exchange-traded funds (ETFs). The platform also confirmed that the number of unique holders has exceeded 300,000, according to figures released by the company.

    “London’s trading industry is coming home!” the project declared, signalling its ambition to modernise access to traditional financial markets through blockchain infrastructure.

    Broad Multi-Chain Coverage and $40 Billion in Cumulative Volume

    The xStocks network now supports 715 tokenised instruments across ten blockchains, including Solana, Ethereum, BNB Chain, Mantle, TON, Ink, X Layer, Arbitrum, Tron, and Optimism. The platform reports more than $40 billion in cumulative transaction volume, a figure that encompasses activity on centralised and decentralised exchanges, as well as minting and redemption operations.

    Distribution has expanded through more than 100 integrations covering exchanges, self-custodial wallets, decentralised exchanges, and lending markets. The tokens are reportedly available in over 110 countries.

    1:1 Backing by Underlying Securities in Regulated Custody

    Each xStock token representing a listed stock or ETF is backed 1:1 by the corresponding underlying security, which is held in regulated custody, according to the project’s website. The tokens can be transferred and traded on-chain, giving holders economic exposure to changes in the underlying asset’s value.

    xStocks states that the instruments can be redeemed for the equivalent cash value or the underlying security, subject to relevant terms and eligibility requirements. The company clarifies that the $40 billion volume figure represents cumulative transaction activity rather than the current value of assets backing the tokens or an equivalent amount of new investor capital.

    Token Utility: Holding, Swapping, and Collateral Use

    Users can hold, transfer, or swap the tokens. Where supported by third-party protocols, the tokens can also be used as collateral, expanding their utility within decentralised finance (DeFi) ecosystems.

    Regulatory Classification and Legal Structure

    The European Securities and Markets Authority (ESMA) classifies these structures as wrapped tokenised equities. In its latest risk report, ESMA said these tokens typically represent a claim on, or economic exposure to, shares held by a trusted party.

    Legal ownership of the underlying securities remains off-chain, so transferring a wrapped token does not necessarily transfer legal title to the shares. ESMA said this structure adds dependencies on the token issuer, platform, and underlying custodian.

    Kraken similarly states that xStocks do not provide voting rights or a legal claim against the company whose shares back the token. Economic benefits from dividends are reflected by increasing the holder’s balance of the corresponding token.

    Issuance and Jurisdictional Availability

    xStocks are issued by Backed Assets (JE) Limited, registered in Jersey. Eligible clients outside the European Economic Area may receive them through Payward Digital Solutions, which is licensed by the Bermuda Monetary Authority.

    Within the EU and EEA, Payward Europe Digital Solutions offers the products. The tokens are unavailable to residents of the United States, United Kingdom, Canada, Australia, and sanctioned jurisdictions. Access through individual exchanges and other integrations remains subject to local rules and partner eligibility checks.

  • London Stock Exchange Partners With Payward to Bring the UK’s Largest Stocks On-Chain

    London Stock Exchange Partners With Payward to Bring the UK’s Largest Stocks On-Chain

    The London Stock Exchange (LSE) and Payward, the parent company of cryptocurrency exchange Kraken, have agreed to expand tokenized stock trading through Payward’s xStocks framework.

    The partnership builds on a platform that has scaled rapidly. In just over a year, xStocks have recorded more than $40 billion in total trading volume, with nearly $20 billion settled onchain. Payward said the products now have more than 200,000 holders.

    Read more: NYSE owner ICE taps tZERO for tokenized securities push, takes stake in firm

    Tokenized U.K. shares planned for global distribution

    The agreement could give U.K.-listed shares access to investors in more than 110 countries through blockchain infrastructure. However, xStocks are not currently available to investors based in the U.K.

    Subject to regulatory approval, the LSE said it will begin listing xStocks and support their trading on LSE 24, its recently announced 24-hour trading venue. The platform is expected to eventually cover tokenized equities from the United States, European Union, United Kingdom and Hong Kong, along with additional asset classes as the framework expands.

    The companies also plan to explore equity tokens issued natively by the LSE. This would allow LSE members to issue and service shares directly onchain while preserving full fungibility and the same rights attached to traditional stock.

    “For years, the assumption was that crypto and traditional finance were on a collision course, and one of them would have to lose. That was never the real story,” said Arjun Sethi, Payward’s co-CEO, in a statement.