# Kraken’s xStocks: A New Chapter in Trading Tokenized Stocks
If you have a passion for both Apple and cryptocurrencies, there’s thrilling news on the way. Cryptocurrency exchange Kraken is preparing to unveil a new offering named xStocks, which will enable users to trade tokenized representations of well-known stocks such as Apple, Tesla, and Nvidia. However, this service will not be accessible to users in the United States at its initial launch.
## What Are xStocks?
As per a special report from the *Wall Street Journal*, Kraken’s xStocks will first be introduced to customers in Europe, Latin America, Africa, and Asia, with intentions for a wider expansion in the weeks that follow.
Kraken characterizes xStocks as an innovative type of tokens that will operate on the Solana blockchain platform. These tokens will be supported by real shares of the underlying securities, with Kraken’s partner, Backed Finance, procuring additional shares when required. The tokens will be exchangeable for the cash value of the underlying securities, theoretically maintaining their prices in harmony with the respective stocks and ETFs.
In practical terms, xStocks will resemble stablecoins tied to tangible assets rather than actual shares. Consequently, users can speculate on the price changes of stocks like Apple or Tesla without possessing any voting rights or receiving dividends.
Among the ETFs that Kraken intends to tokenize are the SPDR S&P 500 (SPY) and SPDR Gold Shares, two of the most commonly held index funds worldwide.
## Why Tokenize Stocks Like Apple?
Kraken’s reasoning for launching xStocks is clear: accessing U.S. markets from abroad can be complex, costly, and slow. As Kraken co-CEO Arjun Sethi conveyed to the *Wall Street Journal*, there is considerable friction in the current framework. xStocks aim to resolve this by offering instantaneous settlement and round-the-clock global availability.
This advancement could signify a major leap towards making U.S. stocks available online in a truly native format, enabling assets like Apple or Tesla to be traded 24/7, even when conventional markets are not operating.
## Learning from the Past
You may ask, “Didn’t Binance previously try something similar?” The answer is affirmative. Binance briefly presented tokenized stocks like Tesla in 2021 but ceased the service months later due to regulatory constraints. To sidestep a similar situation, Kraken is proactively collaborating with regulators in every area where xStocks will operate.
The landscape for tokenization has progressed since Binance’s attempt. What was once seen as a speculative trend in the crypto industry is steadily transitioning into the financial mainstream. While tokenizing Apple stock might appear as a niche endeavor today, companies like Kraken could clear the path for a new way for global investors to access U.S. assets.
## Conclusion
Kraken’s xStocks could transform the manner in which international investors interact with U.S. markets. By tokenizing prominent stocks and ETFs, Kraken seeks to remove obstacles and provide a smooth trading experience. As the financial landscape continues to develop, the success of xStocks may herald a new era of investment accessibility and innovation. For the time being, investors outside the U.S. can anticipate this thrilling development, while those within the country will need to wait and observe how the regulatory situation evolves.
