Cryptocurrency exchange Kraken has opened its tokenized stock trading service to millions of European Union customers, marking a significant step in making US equity markets more accessible to international investors.

The expansion, announced on September 10, 2025, allows eligible EU-based investors to trade digital versions of popular US stocks and exchange-traded funds directly through Kraken’s mobile app. The service uses blockchain technology to remove traditional barriers that have made US market access difficult and expensive for European investors.

Breaking Down Investment Barriers

European investors have long faced challenges when trying to invest in US markets. Traditional methods involve currency conversion fees, settlement delays, and restricted trading hours that limit when people can buy or sell stocks.

Mark Greenberg, Kraken’s Global Head of Consumer, explained the problem: “For too long, it’s been unnecessarily challenging to gain exposure to US markets, and with xStocks we’re removing many of the barriers.”

The xStocks platform addresses these issues by operating 24 hours a day, five days a week – far beyond regular US market hours. Users can also move their tokenized stocks between different platforms or store them in personal digital wallets, something impossible with traditional brokerage accounts.

Impressive Trading Growth

Since launching internationally in late June 2025, xStocks has generated remarkable trading activity. The platform has recorded over $3.84 billion in trading volume across both centralized and decentralized exchanges.

Source: @krakenfx

The most popular tokenized stocks include Tesla (TSLAx), Nvidia (NVDAx), MicroStrategy (MSTRx), and Circle (CRCLx). By mid-August, xStocks captured roughly 58% of all tokenized stock trading activity in the market.

This success puts Kraken in competition with Robinhood, which launched similar services for European customers in June using different blockchain technology.

How Tokenized Stocks Work

Tokenized stocks are digital representations of real company shares. Each xStock token is backed one-to-one by actual shares held by a custodian, ensuring the digital version tracks the real stock’s price movements.

The platform currently offers over 60 tokenized assets, including major companies like Apple, Google, Amazon, and Tesla, plus several exchange-traded funds.

Investors can start with as little as $1, making expensive stocks accessible through fractional ownership. The platform charges no trading fees when purchasing xStocks with US dollars or Kraken’s stablecoin USDG.

Unlike traditional stocks, xStocks don’t provide voting rights or direct ownership in companies. However, dividend payments are automatically reinvested, increasing the token balance to reflect the dividend amount.

Multi-Blockchain Strategy

Kraken initially launched xStocks as SPL tokens on the Solana blockchain, chosen for its fast transaction speeds and low costs. The company has since expanded to support multiple blockchain networks.

Earlier in September, Kraken announced xStocks would be available on Ethereum as ERC-20 tokens, tapping into the network’s extensive decentralized finance ecosystem. The platform also supports BNB Chain and TRON networks.

This multi-chain approach allows users to choose their preferred blockchain and use tokenized stocks as collateral in various decentralized finance protocols – something impossible with traditional stocks.

Arjun Sethi, Kraken’s co-CEO, emphasized the strategy’s importance: “Our multi-chain approach ensures tokenized equities are accessible across ecosystems, portable between wallets and protocols, and composable within the applications users already trust.”

Growing Market Opportunity

The tokenized asset market is experiencing rapid growth as traditional finance meets blockchain technology. Research from Boston Consulting Group and Ripple projects the global tokenized asset market could reach $18.9 trillion by 2033, up from approximately $600 billion in 2025.

Recent regulatory developments have supported this growth. Europe’s Markets in Crypto-Assets (MiCA) regulation, which took full effect in December 2024, provides clear legal framework for tokenization projects across the European Union.

Looking Forward

Kraken’s European expansion continues the company’s broader strategy to integrate traditional financial services with cryptocurrency platforms. The exchange recently acquired Breakout, a proprietary trading platform, and earlier acquired NinjaTrader for $1.5 billion in March 2025. It also launched US-regulated crypto futures trading.

The company plans to expand xStocks support to additional blockchain networks and continue growing the available asset selection. With tokenized stocks available in over 140 countries outside the United States, Kraken is positioning itself as a leader in the emerging tokenized asset sector.