Cryptocurrency exchange Kraken, the primary distribution partner for Backed’s tokenized equities product xStocks, has joined forces with Trust Wallet, one of the leading self-custody crypto wallets globally, to broaden the availability of tokenized equities for users.
In a recent announcement on Friday, Kraken stated that it is “introducing interoperable tokenized equities to more than 200 million users around the globe” by bringing xStocks to Trust Wallet users, allowing them to trade tokenized equities from Backed, a provider of collateralized onchain assets.
This integration will enable Trust Wallet users to purchase and hold 60 different xStocks using various local fiat currencies. It will also allow deposits and withdrawals across multiple blockchains, including Solana, BNB Chain, Tron, and Ethereum.
“This is more than just an integration — it’s a paradigm shift,” said Kraken Co-CEO Arjun Sethi. “We’re advancing towards a future where global markets function without borders, barriers, and with the same openness and accessibility as the internet itself.”
XStocks not available everywhere
Kraken positioned this development as placing tokenized equities “directly into the hands of millions.”
Trust Wallet CEO Eowyn Chen mentioned that the agreement bridges the gap between Web3 and conventional markets, while Backed co-founder Adam Levi highlighted crosschain accessibility as a “public good.”
However, the 200 million Trust Wallet users mentioned in the announcement may not all be eligible to trade xStocks. Securities are governed by different regulations compared to crypto tokens, which vary significantly by jurisdiction.
Ross Shem, co-founder and chief operating officer at tokenization firm Stobox, previously noted that tokenized securities are still “bound by securities laws.”
This means that they must comply with Know Your Customer (KYC) regulations and adhere to investor protection standards. “The only similarity they share with crypto is the underlying technology, not the ethos, not the regulation, not the culture,” Shem stated.
Kraken itself indicated that xStocks are “not available in the US or to US persons.” The exchange also mentioned that geographic restrictions are enforced.
This implies that the number cited in the exchange’s announcement might be overstating the immediate pool of eligible users for the new product.
Cointelegraph reached out to Kraken for a comment, but did not receive a response before publication.
Related: Kraken met with SEC crypto task force to discuss tokenization
XStocks generated over $4 billion in volume
Since their launch, Kraken reported that xStocks have already amassed over $4 billion in total trading volume across centralized and decentralized exchanges, indicating strong interest in exposure to tokenized US capital markets.
Kraken has also introduced support for eligible EU-based clients. The company stated that the initial rollout includes all countries except the US, the United Kingdom, Canada, and Australia.
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