Ethereum network welcomes Kraken's xStocks, offering over 60 tokenized equities such as Tesla and Amazon.

In the world of finance, a new trend is emerging as traditional stock trading meets the blockchain. The U.S. Securities and Exchange Commission, along with other entities, have raised investor protection concerns regarding the tokenization of stocks. Yet, this innovative approach to trading stocks continues to gain traction.

One of the pioneers in this field is DeFi Dev Corp, which became the first crypto treasury firm to tokenize public stock on Kraken's Solana-based xStock platform. Kraken, a renowned cryptocurrency exchange, started the tokenization of US stocks with its product xStocks in June 2025. This groundbreaking move allowed European investors to trade over 60 tokenized US shares and ETFs via blockchain technology.

These assets are issued as ERC-20 tokens and are backed one-to-one by the underlying securities. Eligible non-U.S. clients can deposit and withdraw xStocks using Ethereum wallets. The expansion brings over 60 tokenized assets to Ethereum, including tech giants like Apple, Tesla, Nvidia, and Amazon.

The tokenized stock market stands at $342 million, which is only 1.2% of the total $27.9 billion tokenized real-world asset market. Despite its small size, the sector is growing as blockchain adoption continues. Kraken views tokenized equities as neutral financial tools that integrate traditional assets with blockchain.

Kraken's xStocks have seen strong activity since their debut in June, attracting 25,000 holders and generating $400 million in sales during the first month. Other firms, including Gemini and eToro, are also moving toward Ethereum-based tokenized equities, indicating a growing interest in this innovative approach to trading stocks.

However, regulatory concerns persist for tokenized equities. Legal experts point to a lack of clarity around the regulatory classification of tokenized stocks. World regulators and stock markets demand tougher control, emphasizing the need for clear guidelines in this evolving field.

It is essential to note that tokenized stocks do not offer the same rights as traditional shares, such as a claim on company assets or participation in governance. They simply reflect the price of the corresponding stock, allowing for 24/7 trading and fractional ownership of stocks.

Robinhood, a popular trading platform, recently launched a blockchain to support tokenized stock trading in Europe. This move signifies a growing acceptance of tokenized stocks in the traditional financial world. As the industry continues to evolve, it will be interesting to see how regulatory bodies and market participants adapt to this innovative approach to trading stocks.