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Cryptocurrency exchange Kraken has achieved a major milestone in tokenized stock trading, reporting more than $5 billion in total volume since the launch of its xStocks platform in July 2025. The achievement, announced alongside the company’s third-quarter financial results on October 22, 2025, underscores Kraken’s accelerating presence in the emerging market for tokenized assets.
The xStocks product allows users in over 160 countries excluding the United States to trade tokenized versions of U.S. equities such as Apple, Microsoft, and Tesla. The platform, launched in partnership with Backed, enables global investors to gain fractional exposure to traditional stocks through blockchain technology.
“Crossing $5 billion in tokenized stock trading volume shows that investor appetite for 24/7, borderless equities exposure is real,” said Arjun Sethi, Co-CEO of Kraken. “We believe tokenized assets will redefine how global investors participate in traditional markets.”
Kraken’s tokenized stock trading platform has now attracted more than 37,000 unique holders, with over $1 billion in on-chain transactions conducted across both centralized and decentralized venues.
Following strong initial adoption, Kraken expanded xStocks to Europe in September 2025, partnering with major industry players such as Bybit, Phantom, OKX Wallet, and Telegram to extend access and liquidity. The expansion aims to make tokenized stock trading available to retail and institutional investors seeking exposure to traditional financial assets without the limitations of regulated stock exchanges.
The platform’s design allows trading to continue around the clock, unlike traditional stock exchanges that restrict trading to weekdays and limited hours. Kraken said this flexibility aligns with growing global interest in “always-on” financial markets powered by blockchain.
Tokenized stock trading bridges the gap between traditional equity markets and the decentralized finance ecosystem, said Daniel Masters, Executive Chairman at CoinShares. It’s not just about access as it’s about modernizing how assets are owned, traded, and settled.
Kraken’s collaboration with Backed, a Switzerland-based tokenization service, ensures each digital token is fully backed by the corresponding real-world stock. The tokens are issued under European regulatory standards, giving investors verifiable claims to the underlying securities.
Kraken’s third-quarter results reflected substantial business growth beyond tokenized stock trading. The exchange reported $648 million in revenue more than double the $303.5 million earned in the same quarter of 2024 marking a new record for the company.
Its adjusted EBITDA surged to $178.6 million, a dramatic turnaround from the $6.8 million loss recorded a year earlier. Total transaction volume reached $561.9 billion, up 23% from the previous quarter.
According to Kraken, the gains were fueled by expanding product lines, including xStocks, derivatives, and institutional custody services.
“Our Q3 results demonstrate that our strategy to diversify beyond core crypto trading is working,” said David Ripley, Kraken’s Co-CEO. “Tokenized stock trading and tokenized assets more broadly are central to that vision.”
The company’s acquisition of The Small Exchange for $100 million earlier this year further indicates its intent to integrate traditional finance (TradFi) and decentralized finance (DeFi) markets into one ecosystem.
Tokenized stock trading which is the process of representing real-world stocks as digital tokens on a blockchain continues to gain traction among investors seeking flexibility and lower entry barriers. These tokens can be traded peer-to-peer or across platforms like Kraken, offering instant settlement, 24/7 availability, and global accessibility.
Each token issued via xStocks is fully backed by underlying equities, with blockchain records ensuring transparency and traceability. This model appeals to investors in regions where direct access to U.S. markets is limited or heavily regulated.
Tokenized stock trading is one of the most exciting frontiers in digital finance, said Emma Todd, CEO of MMH Blockchain Group. Platforms like Kraken are democratizing access to global markets and setting new standards for financial inclusion.
Kraken’s sustained momentum in tokenized stock trading demonstrates both the scalability of blockchain-based equities and the growing convergence of crypto and traditional assets. Analysts suggest that as regulatory clarity improves, tokenized markets could soon complement or even compete with conventional exchanges.
As tokenized stock trading matures, experts predict a wave of institutional adoption and cross-border investment opportunities. The ability to trade traditional equities via blockchain 24/7 is expected to reshape liquidity models and potentially influence how stock markets operate in the future.
For Kraken, the milestone signals not only financial success but also validation of its long-term strategic pivot toward tokenization and hybrid financial systems. The exchange is positioning itself as a leader in bridging traditional securities and decentralized trading as a trend likely to shape the next era of digital finance.
With $5 billion in tokenized stock trading volume and counting, we’re witnessing the early stages of a structural shift in global markets, said Sethi. This isn’t a temporary experiment as it’s the foundation of a more open financial future.
