Kraken’s xStocks Surpasses $1.1B as EU Expansion Accelerates

Kraken’s parent company Payward has significantly broadened its tokenized equities offering. Kraken’s xStocks platform now includes more than 200 UK and European shares, pushing total assets under the product past $1.1 billion.
Major Expansion Beyond U.S. Markets
The latest additions mark a clear shift from Kraken’s xStocks earlier focus on U.S. equities. The new lineup features all 40 companies in Germany’s blue-chip DAX index, including software giant SAP, industrial conglomerate Siemens, and insurer Allianz. A range of other prominent UK and EU-listed firms have also been added, giving eligible crypto investors exposure to some of Europe’s largest companies through blockchain-based tokens.

Each xStock token is fully backed by an underlying share held in custody. However, holders do not receive direct ownership rights in the companies themselves. The tokens provide economic exposure rather than traditional shareholder privileges such as voting.
Availability Still Restricted
Despite the European expansion, the tokens remain unavailable to investors in the United Kingdom and the United States. Access continues to be limited to eligible users in supported jurisdictions outside those markets.
The move follows a September agreement between Payward and the London Stock Exchange Group to tokenize the LSE’s 100 largest listed companies. That initiative is planned for the exchange’s LSE 24 platform and is targeted for 2027, subject to regulatory approvals.
xStocks use a classic 1:1 backed wrapper/tracker certificate model: Real shares are bought and held in regulated, segregated custody → tokens are minted 1:1 on-chain → holders get price exposure + self-custody of the token, but not legal ownership of the stock.
This structure aims to combine traditional-market custody protections with blockchain transferability and 24/7 trading, while remaining distinct from holding shares in a conventional brokerage account.
Growing Momentum in Tokenized Equities
Crossing the $1.1 billion asset threshold underscores rising demand for on-chain access to traditional stocks. Tokenized shares allow round-the-clock trading, fractional ownership, and settlement on blockchain rails—features that appeal to crypto-native investors seeking diversified exposure without leaving the digital asset ecosystem.
By adding a substantial slate of European names, Kraken is positioning xStocks as a more global product. The inclusion of the full DAX index in particular gives users a concentrated way to track Germany’s largest publicly traded companies through a single platform.
The real shares sit with regulated custodians, not with Kraken or the average token holder:

Primary custodian (U.S. stocks): Alpaca Securities LLC (FINRA-regulated broker-dealer and SIPC member). Supplemental insurance coverage is provided by Lloyd’s of London (up to $175 million aggregate in some disclosures).
Secondary/additional custodians: InCore Bank (and in some structures, other institutions such as Maerki Baumann).
For the newer UK and EU stocks, custody and execution are handled through Payward’s partnership with GTN, a multi-jurisdictional brokerage infrastructure provider.

The shares are held in segregated accounts, meaning they are not mixed with the issuer’s or Kraken’s own assets.
What’s Next
Further expansion will likely depend on regulatory progress, especially around the planned London Stock Exchange collaboration. As tokenization of real-world assets continues to gain traction, platforms that can successfully bridge traditional markets with crypto infrastructure are expected to attract more attention from both retail and institutional participants.
For now, the addition of more than 200 UK and EU stocks represents one of the larger single expansions of a tokenized equity product to date—and a notable milestone for Kraken’s broader ambitions beyond pure cryptocurrency trading.