Kraken's parent company Payward has significantly expanded its tokenised equities platform, xStocks, adding more than 200 UK and European-listed shares. This marks the platform's largest move beyond US stocks, according to a company announcement on Wednesday.
The initial batch includes what Payward describes as "the most actively traded companies listed in the UK and European Union." Further listings are expected on a rolling basis. However, the expansion does not change distribution or eligibility: xStocks "continue to be unavailable to investors in the United Kingdom," and they are also off limits in the US and to US persons.
In a separate announcement, Payward confirmed it has tokenised every constituent of Germany's DAX 40 index. Tokens for major companies such as SAP, Siemens, Allianz, and Deutsche Telekom are available from day one. These DAX tokens are also accessible on 360X, a Deutsche Börse Group company regulated under the EU's DLT Pilot Regime, according to both Payward and Deutsche Börse. Additionally, Xetra-Gold, Deutsche Börse's gold-backed exchange-traded commodity, has been added as an xStock.
Mark Greenberg, Payward's chief commercial officer, highlighted the global ambition: "Access to capital markets is still drawn on a map, and it still depends on holding the right passport. A portfolio should not have borders or trading hours." Carlo Koelzer, head of digital assets and FX at Deutsche Börse Group, called the partnership "exactly the kind of collaboration that accelerates the transformation of capital markets."
Each xStock is backed one-for-one by the underlying share, held at a regulated custodian for as long as the token trades. The tokens trade on Kraken and partner platforms within the xStocks Alliance, and can move across blockchains including Solana, Ethereum, TON, Ink, and X Layer. Execution and custody of the underlying shares are handled by GTN, a brokerage infrastructure firm. The UK and EU are the first markets delivered under Payward Services' partnership with GTN, which Payward says enabled the deployment of hundreds of new assets "in a matter of weeks."
Investors should note that these tokens provide exposure to a share's price but do not confer legal ownership of the underlying company, as reported by CoinDesk and Cointelegraph citing Kraken's risk disclosure. xStocks are issued by Backed Assets (JE), a Jersey company, and offered to eligible Kraken customers through a Bermuda-licensed affiliate. Payward states they are not registered with any local securities regulator. On Kraken in the European Economic Area, xStocks trade 24 hours a day, five days a week, while other venues may offer round-the-clock trading.
Since its launch in June 2025 with tokenised US stocks and ETFs, xStocks has grown to span more than 1,500 assets, with over $1.1 billion in assets under management and more than $45 billion in total transaction volume across over 550,000 unique holders. Token Terminal data places xStocks' market capitalisation at about $1.1 billion, ranking third behind Binance's bStocks and Ondo Finance, according to Cointelegraph.
Payward says the expansion fulfils its plan, agreed with the London Stock Exchange in September, to tokenise the top 100 London-listed equities. Subject to regulatory approval, the LSE intends to list xStocks and trade them on its LSE 24 venue in 2027. Hundreds of Hong Kong-listed shares are expected to follow "in the coming weeks," with other international markets after that.
For UK investors seeking direct ownership of FTSE or DAX shares, traditional brokerage services remain necessary for now. The expansion underscores the growing intersection of traditional finance and blockchain technology, but regulatory boundaries still shape access.
This article is for informational purposes only and does not constitute financial advice.
