On July 9, cryptocurrency exchange Kraken, in collaboration with tokenization firm Backed and BNB Chain, announced the launch of tokenized stocks, aimed at accelerating the integration of traditional financial instruments into the digital economy.
Expansion of xStocks on BNB Chain
The partnership between Kraken and BNB Chain will allow exchange clients outside the U.S. to deposit and withdraw tokenized U.S. equities, such as Apple and Tesla stocks, as BEP-20 tokens in the coming weeks. This continues the xStocks initiative that began with the launch on the Solana platform last month.
Benefits of Tokenized Stocks
The transition to BNB Chain will enable xStocks tokens to be seamlessly transferred between Kraken's centralized platform and the decentralized ecosystem of BNB Chain. This will provide advantages such as lower fees compared to Ethereum, faster transaction execution, and compatibility with decentralized finance protocols. Kraken Co-CEO Arjun Sethi noted that the expansion to BNB Chain reinforces their belief that tokenized equities are not merely digital wrappers, but a foundational upgrade to the financial system.
Potential Challenges and the Future of Tokenized Stocks
Despite the prospects, the adoption of tokenized stocks remains uncertain. Currently, the xStocks trading volume is only $32.8 million. Backed co-founder Adam Levi suggested that integrating with lending protocols and derivatives could make xStocks the standard for tokenized equities, however, their continued utility will have to extend beyond speculative trading.
The expansion of tokenized stocks on BNB Chain marks an important step toward a more accessible and transparent global financial system. However, the future of tokenized assets depends on their practical applications and integration with existing financial instruments.
