The cryptocurrency platform Kraken has launched a new feature, xStocks, allowing users to trade tokenized securities, including shares of large companies.
Overview of the xStocks Platform
Kraken, a well-known cryptocurrency exchange, launched the xStocks platform on June 30. This platform allows users to trade tokenized versions of 55 stocks and 5 ETFs. Available assets include companies like Nvidia, Apple, Tesla, and GameStop. All tokens will be backed by real stocks at a 1:1 ratio and will be issued as SPL tokens on the blockchain. Users can also withdraw their xStocks tokens to their wallets for self-custody.
Limitations of the Platform
Despite the new opportunities, the xStocks platform has several limitations due to technical and regulatory aspects. First, the platform is not available in all countries. For example, users from the U.S., Canada, the U.K., the EU, and Australia cannot access it at the time of the announcement. Additionally, xStocks tokens do not confer shareholder rights, including the ability to vote in shareholder meetings. The lack of access to dividends is also a significant limitation, which may be critical for some traders.
Trends in Asset Tokenization
Tokenization of stocks is part of a growing trend of bringing real-world assets onto the blockchain. According to researchers, the total value of tokenized assets will reach $50 billion by March 2025, with projections of up to $2 trillion by 2030. The xStocks tokens are aimed at high-growth companies such as Tesla and Nvidia, which reinvest profits, making them ideal for use on this new platform.
The launch of xStocks by Kraken represents a significant step in the integration of traditional financial instruments into the crypto space, despite existing limitations.
