Crypto exchange Kraken, the main distribution partner for Backed’s tokenized equities product xStocks, has partnered with Trust Wallet, one of the world’s largest self-custody crypto wallets, to extend the reach of tokenized equities to users.
In a Friday announcement, Kraken said it is “bringing interoperable tokenized equities to over 200 million users across the world” by extending xStocks to Trust Wallet users, who will be able to trade tokenized equities by Backed, a provider of collateralized onchain assets.
The integration will allow Trust Wallet users to buy and hold 60 different xStocks using a variety of local fiat currencies. It would also enable deposits and withdrawals across multiple chains, including Solana, BNB Chain, Tron and Ethereum.
“This is more than integration — it’s a paradigm shift,” said Kraken co-CEO Arjun Sethi. “We’re accelerating the move to a future where global markets operate without borders, without barriers, and with the same openness and accessibility as the internet itself.”
xStocks not available everywhere
Kraken framed the development as putting tokenized equities “directly into the hands of millions.”
Trust Wallet CEO Eowyn Chen said the deal bridges the gap between Web3 and traditional markets, while Backed co-founder Adam Levi emphasized crosschain accessibility as a “public good.”
However, the 200 million Trust Wallet users advertised in the announcement may not all be eligible to trade xStocks. Securities are regulated differently from crypto tokens, and laws diverge significantly across different jurisdictions.
Ross Shem, co-founder and chief operating officer at tokenization company Stobox, previously said that tokenized securities are still “bound by securities laws.”
This means that they require Know Your Customer (KYC) rules and must respect investor protection standards. “The only thing they share with crypto is the underlying technology, not the ethos, not the regulation, not the culture,” Shem said.
Kraken itself noted that xStocks are “not available in the US or to US persons.” The exchange also added that geographic restrictions are in place.
This suggests that the number advertised in the exchange’s announcement might be overstating the immediate pool of eligible users for the new product.
Cointelegraph reached out to Kraken for comment, but did not get a response by publication.
Related: Kraken met with SEC crypto task force to discuss tokenization
xStocks generated over $4 billion in volume
Since their debut, Kraken said xStocks have already generated more than $4 billion in combined trading volume on centralized and decentralized exchanges, signaling strong demand for exposure to tokenized US capital markets.
Karken has also rolled out support for eligible EU-based clients. The company also said that the initial rollout covers all countries except the US, the United Kingdom, Canada and Australia.
Magazine: 7 reasons why Bitcoin mining is a terrible business idea
