Kraken, in partnership with Backed, is broadening the reach of its tokenized equities project, xStocks, by bringing it to the Ethereum blockchain. The move is intended to enhance access to tokenized stocks and exchange-traded funds (ETFs) on one of the most widely adopted smart contract ecosystems.
The initiative builds on the growing demand for blockchain-based financial products, aiming to position Ethereum as a key hub for digital equities. Kraken highlighted that Ethereum’s large developer community, strong liquidity base, and global adoption make it a natural fit for this expansion. The company indicated that extending support for xStocks to Ethereum would allow millions of Ethereum users, along with thousands of live decentralized applications, to benefit from industry-standard liquidity in tokenized equities.
Greater Flexibility for Investors
In the coming weeks, Kraken clients who meet eligibility requirements will gain the ability to deposit and withdraw xStocks directly on Ethereum. This change is designed to provide investors with greater choice in how they manage their tokenized assets, enabling them to move funds seamlessly between Kraken’s exchange and self-custodial wallets. Such flexibility opens the door for wider participation in on-chain activity and integration within decentralized finance ecosystems.
The development follows Kraken’s earlier announcement in late June that it had introduced tokenized U.S. stocks and ETFs for eligible non-U.S. clients through xStocks. That launch was part of the firm’s broader strategy to bridge traditional financial markets with blockchain technology.
Kraken’s Multi-Chain Strategy
Kraken co-CEO Arjun Sethi described xStocks as central to the company’s mission of transferring traditional assets to trust-minimized blockchain infrastructure. He emphasized that the platform is intended to connect public markets with the internet’s foundational layer. According to him, the decision to adopt a multi-chain strategy was intentional, ensuring that tokenized equities remain accessible across different ecosystems, transferable between wallets and protocols, and compatible with a wide range of existing applications.
He also explained that Ethereum represents the logical next step due to its role as the center of innovation in smart contracts, decentralized finance, and on-chain liquidity. By extending xStocks to Ethereum, the project is expected to make tokenized equities more programmable, interoperable, and continuously accessible to both developers and institutions worldwide.
This is what financial infrastructure is supposed to look like
We launched @xStocksFi on Ethereum. Not because it was trendy, but because it was inevitable.
Real stocks. Onchain. Fully backed. Self custodial. Available globally. Integrated with the architecture of tomorrow.
— Arjun Sethi (@arjunsethi) September 2, 2025
Growing Momentum for Tokenization
Kraken’s announcement adds to a wave of developments in the tokenization space this summer. The company had already initiated xStocks in June, shortly before Robinhood revealed plans to enter the tokenized stock market. Around the same time, reports emerged that JPMorgan Chase was developing a service focused on tokenizing carbon credits.
Industry observers have noted that although these initiatives span diverse sectors, from equity trading to environmental markets, they share a common goal of migrating traditional financial services onto blockchain infrastructure. The underlying vision centers on reshaping finance by making assets more portable, transparent, and programmable across decentralized systems.
Implications for the Future
The expansion of xStocks to Ethereum marks another step in the ongoing trend of bringing conventional financial products into the blockchain economy. By leveraging Ethereum’s established ecosystem, Kraken and Backed are seeking to attract both retail and institutional players to the emerging market for tokenized equities.
The approach could accelerate adoption of tokenized financial instruments, reinforcing Ethereum’s role as a cornerstone of decentralized finance. At the same time, the expansion highlights the broader push across the financial industry to bridge the gap between traditional markets and blockchain-based solutions.
If successful, this integration could pave the way for more fluid participation in equity markets, where assets can be transferred, fractionalized, and traded in ways that are more aligned with the digital economy. For Kraken, it represents both an expansion of product offerings and a statement of intent to lead in the tokenization of traditional financial assets.
