Kraken, one of the leading US exchanges, is on track to launch "xStocks," the tokenized versions of the stocks of such prominent American companies as Apple, Nvidia, and Tesla, the Wall Street Journal reports.
The move is meant to democratize access to the burgeoning stock market for traditional investors outside the US.
In such a way, potential investors can avoid local brokerages with exorbitant fees.
Each token will be able to act as a digital proxy for a single share. Fractional ownership makes it possible to invest relatively small amounts for retail market participants. Kraken will fully back these tokens with actual stocks.
Overall, the company will offer exposure to more than 50 U.S. stocks as well as exchange-traded funds (ETFs).
The idea is not new. As reported by U.Today, Binance introduced such tokenized stocks back in 2021, but it was forced to shelve the product due to regulatory pressure.
Vladislav Sopov
U.Today Editorial Team