Kraken Parent Payward Takes xStocks Beyond US Markets

Payward, the parent company of crypto exchange Kraken, recently launched the xStocks tokenized-equity framework to lower barriers in traditional finance and allow retail investors to subscribe for U.S. IPO shares through tokens backed 1:1. The move deepens the integration of blockchain technology with conventional securities markets, opening an IPO market once limited to institutional investors to participants in more than 110 countries worldwide.

In its latest expansion, xStocks offered access to SpaceX's IPO in early June 2026. Payward then opened pre-IPO subscriptions for Italian technology company Bending Spoons on June 26, before the company listed on Nasdaq in early July. Payward had previously partnered with Nasdaq in March to develop a securities transformation gateway aimed at accelerating tokenization.

xStocks, adopted by Kraken, is a framework for tokenized U.S. stocks and ETFs backed 1:1 by the underlying assets and tradable around the clock onchain. The addition of perpetual futures allows non-U.S. investors to go long, short or hedge without being constrained by U.S. stock-market hours or contract expiry dates. However, high leverage also magnifies the risk of margin calls and liquidation.

On Feb. 24, 2026, Kraken launched its first 10 xStocks perpetual contracts on its regulated derivatives platform. The lineup included NVDAx, AAPLx, TSLAx, SPYx, QQQx and GLDx and was made available for 24/7 trading with leverage of up to 20 times to eligible non-U.S. clients in more than 110 countries. On July 3, Kraken also began accepting the 10 assets as collateral for futures or margin trading, applying haircuts of 10%–30% and individual caps ranging from $100,000 to $1 million.

Payward-owned Kraken is a major global cryptocurrency exchange, while Franklin Templeton is a traditional asset manager. Their partnership centers on bringing fund yields, collateral and trading services onto blockchains, allowing institutional investors to use tokenized assets within a compliant framework. The deal also reflects Wall Street’s accelerating push into asset tokenization.

As of July 20, 2026, Payward and Franklin Templeton had announced plans to jointly develop tokenized yield products, blockchain-based funds and institutional crypto market services. Kraken also plans to accept the BENJI tokenized money market fund as collateral. The companies have not disclosed the value of the partnership, a specific launch date or expected yields.

Kraken has expanded in recent years from a cryptocurrency exchange into a multi-asset platform. Its xStocks, issued by Backed Assets (JE) Limited, are backed 1:1 by underlying US shares or exchange-traded fund assets. The tokens give non-US investors exposure to US stock prices. Trading volume exceeded $25 billion over the past year, reflecting growing demand to bring traditional assets onchain.

Kraken launched its “Crypto + xStocks” bundles on April 30, 2026, initially offering them to non-US retail clients in selected countries. The products use preset allocations and automatic rebalancing. Bundles include Bitcoin paired with SPYx, a token tracking the S&P 500 ETF, as well as technology stocks such as Apple and NVIDIA combined with Bitcoin, Ethereum and Solana. Investors can also make recurring purchases, break up the bundles or sell them.

Equity tokenization maps traditional shares onto blockchains, potentially allowing investors to trade across borders and nearly around the clock. Nasdaq’s partnership with Kraken seeks to connect regulated securities markets with decentralized networks while giving issuers control over legal, governance and shareholder-rights arrangements.

Nasdaq said it would use Kraken’s xStocks framework to jointly build a tokenized-equities gateway targeted for launch in the first half of 2027. The companies will also introduce an “equity token design” framework intended to ensure that tokenized shares on blockchain networks remain equivalent to traditional shares in legal status, corporate governance and investor rights.

xStocks is a Kraken-affiliated tokenized-equity platform that represents U.S. stocks as tokens that can be traded on blockchains and integrated into DeFi. With the tokenized-equity market surpassing $1 billion in total value, the platform has also recently partnered with Nasdaq on plans to expand the products beyond the United States. The moves reflect the accelerating shift of traditional securities toward onchain distribution.

xStocks launched its “xPoints” rewards program in July 2026, targeting tokenized-stock traders, liquidity providers and DeFi developers with rewards based on their participation in the ecosystem. The market has also interpreted the points system as a possible precursor to an ecosystem token, but the platform has not announced a token, conversion rate or launch date.