Kraken Targets European Stock Market with Its xStocks Service amid IPO Push

4 hours ago by · 2 mins read

Kraken has launched its xStocks service in the EU, a strategic move tied to its IPO plans and diversification into tokenized real-world assets.

Crypto exchange Kraken has expanded its tokenized US stock offering to the European Union, the company announced on Sept. 10. The service, xStocks, now allows clients in the region to trade digital versions of popular equities like Tesla and Nvidia.

The move is part of a broader corporate strategy as the exchange reportedly seeks $500 million in new funding ahead of a potential 2026 IPO. This expansion follows other diversification efforts, including the recent acquisition of prop trading platform Breakout, which offers traders up to $200,000 in capital.

Powered by Swiss firm Backed, xStocks offers 24/5 trading, removing friction from traditional market hours and settlement delays. After launching in June to over 140 countries outside the US and EU, the service has generated over $3.84 billion in volume, according to Dune Analytics.

Kraken Enters Competitive European Market

The expansion places Kraken in a competitive market where rivals like Gemini offer tokenized stocks. The move also comes as traditional finance giants enter the space, with Nasdaq’s tokenized securities platform SEC proposal showcasing a clear interest and flexibility from traditionally monolithic organizations.

The platform utilizes a multi-chain strategy on Solana, BNB Chain, and TRON, with plans for Ethereum. This technical approach is central to Kraken’s wider goals for its crypto derivatives trading in the EU.

However, the tokenized stock sector faces regulatory scrutiny. The World Federation of Exchanges has urged regulators to take a harder stance, arguing such products can be “mimics” that lack key shareholder rights like voting.

This move taps into the growing trend of tokenizing real-world assets, a market that Boston Consulting Group projects could be worth trillions by the 2030s. It provides another avenue for users to access popular equities alongside searching for the best cheap stocks to buy.

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