Kraken launches xStocks, offering users the ability to trade tokenized American stocks on the Solana blockchain without intermediaries.
What is xStocks?
xStocks represents tokens that can be traded 24/7. They reflect real shares of companies such as Apple and Tesla, ensuring legal compliance and security through collaboration with BackedFi, a regulated issuer based in Switzerland. These tokens are issued on the Solana blockchain, providing efficient integration into the DeFi ecosystem.
Benefits of Using xStocks
With xStocks, traders gain continuous market access unrestricted by time. Key benefits include:
- **24/7 Access.** Ability to trade anytime. - **Fractional Investing.** Investing in small shares, allowing for portfolio diversification. - **Instant Transaction Settlement.** Transactions are finalized on-chain in real-time. - **No Need for Traditional Banking Systems.** No need for brokerage accounts and paperwork.
Why Solana is Key to this Innovation?
Solana was chosen for xStocks due to its high performance and low fees. It supports over 65,000 transactions per second and employs a hybrid Proof-of-History and Proof-of-Stake architecture, making it ideal for tokenized products. Solana also enables tokens to integrate with other DeFi applications, allowing for interaction and circulation within large ecosystems.
The launch of xStocks by Kraken opens new horizons for investors, providing access to stocks and full trading freedom. Innovations in the financial markets continue, and xStocks represent an important step in this direction.
