The Crypto Exchange Kraken and the Swiss Tokenization Company, which supported, said Tuesday that they bring Xstocks, a package of tokenized shares, to the Ethereum network with the aim of integrating stcoks into decentralized financing (Defi) Infrastructure.
The initiative allows qualified Kraken clients to deposit and pull Xstocks directly at Ethereum, where they will exist as the ERC-20-tokens, which is fully safety-provided 1: 1 by underlying shares. This means that investors can move tokenized shares and ETFs between the exchange and self-defense wallets while accessing Ethereum-based decentralized financing (Defi) Protocols.
The rolling at Ethereum previously follows Xstocks launched on Solana, the BNB chain and throne. Since its debut in June, the product has generated over $ 3.5 billion in combined trading volume across centralized and decentralized exchanges.
Ethereum’s position as the largest smart contract network provides Xstock’s immediate range over thousands of decentralized applications.
“Our multi-chain strategy is conscious,” Kraken Co-Ceo Arjun Sethi said in a statement. “It ensures that tokenized shares are available across ecosystems, laptops between wallets and protocols and composed within the applications that users already trust. Ethereum is the next logical step.
The move comes when momentum grows to bring traditional financial instruments including stocks on blockchain rails, also known as the tokenization of assets in the real world. Crypto exchanges such as Gemini and Robinhood have already introduced tokenized US shares to EU users. However, tokenized stock supply also raised concerns, such as limited shareholder rights and fragmented rules.
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