Kraken Expands xStocks Product to Binance-backed BNB Chain
Kraken recently made a big announcement about the expansion of its xStocks product to Binance-backed BNB Chain, a move that brings tokenized US equities to a wider global audience. This development is set to make tokenized stocks such as AAPLx, TSLAx, SPYx, and NVDAx more accessible to users outside the United States.
The assets, which are issued by Backed, will be available as BEP-20 tokens on BNB Chain, allowing for seamless integration with decentralized finance (DeFi) platforms like PancakeSwap. Arjun Sethi, Kraken’s co-CEO, highlighted that this expansion aligns with the company’s vision of creating a “chain-neutral” and “always-on” capital market.
Tokenized equities are seen as “programmable settlement primitives” that enable instant global transfers and atomic settlement. They also open up possibilities for integrating with on-chain financial products like derivatives and lending protocols. Sethi emphasized the importance of assets like equities being able to move across different ecosystems and liquidity layers without being restricted by jurisdictional boundaries or outdated custodial systems.
The tokenization market has been heating up in recent months, with a growing number of crypto-native platforms and traditional financial institutions showing interest in tokenized assets. According to projections by the Security Token Market, the tokenization market is expected to reach $30 trillion by 2030, indicating a significant growth opportunity.
Galaxy Digital, a prominent financial services firm, noted that while the 24/7 trading model offers continuous market access, it also comes with increased volatility during off-hours. This shift towards real-time trading and decentralized asset ownership could pose challenges for traditional exchanges like the New York Stock Exchange (NYSE), which have traditionally operated on centralized liquidity and structured trading hours.
Legacy exchanges are now facing pressure to adapt to the changing landscape or risk losing market share to emerging platforms that offer decentralized trading and ownership models. They also risk losing revenue streams such as trading fees and data sales to these new players in the market.
In conclusion, Kraken’s expansion of its xStocks product to BNB Chain signals a significant step towards making tokenized US equities more accessible on a global scale. This move reflects the growing trend of tokenization in the financial industry and the need for traditional exchanges to evolve in order to stay competitive in the rapidly changing landscape of digital assets.