Key Takeaways:
Payward, the parent company of crypto exchange Kraken, is partnering with investment infrastructure provider GTN to bring tokenized shares of companies listed in Hong Kong, the UK, Europe and South Korea onto its xStocks platform, the firm said Wednesday.
"The biggest asset class that hasn't been tokenized yet is the rest of the world," Mark Greenberg, global head of Payward Services, said in a statement. "One asset at a time, we're bringing truly global capital markets onchain until geography becomes irrelevant to investing."
xStocks, which launched a year ago with tokenized US stocks and exchange-traded funds, now supports more than 500 tokenized securities, has processed over $35 billion in cumulative trading volume and counts nearly 200,000 holders, according to Payward. The platform offers blockchain-based tokens fully backed 1:1 by underlying shares held in regulated custody, with fractional investing from as little as $1 and 24/7 on-chain trading.
The expansion comes as competition in tokenized equities intensifies across the crypto and traditional finance sectors. Robinhood expanded its tokenized stock offering beyond European users earlier this month, while Coinbase is planning to offer on-chain stock tokens. The Depository Trust & Clearing Corporation, the backbone of US securities settlement, has begun live testing of tokenized securities infrastructure, and both Nasdaq and the New York Stock Exchange have launched tokenization initiatives of their own.
GTN, which connects to more than 90 global markets through a single integration, will provide execution, custody and recordkeeping for the traditional securities backing the tokens. Subject to obtaining the required regulatory licenses in each jurisdiction, GTN also plans to make xStocks products available to its institutional clients. The partnership also opens the door for xStocks to expand beyond equities into other tokenized asset classes over time, Payward said.
Citi has estimated the tokenized securities market could reach $5.5 trillion by 2030, including $2.6 trillion in tokenized equities. Until now, most tokenized equity platforms have focused on replicating US markets on-chain, offering blockchain-based versions of popular stocks such as Nvidia, Apple and Tesla. The expansion into Asian and European markets gives investors access to companies tied to the AI supply chain and other high-growth sectors that have drawn strong interest from global retail traders.
The announcement also highlights an ongoing industry debate over how tokenized stocks should be issued. xStocks relies on third-party issuers that purchase and custody traditional shares before minting tokens on-chain. An alternative approach argues securities should be issued natively on blockchain networks, eliminating intermediaries. The debate is drawing increased attention from regulators and market infrastructure providers as tokenized securities move closer to the financial mainstream.
xStocks products remain unavailable to US investors.
This article is for informational purposes only and does not constitute investment advice.
