Kraken’s tokenized equities platform, xStocks, has surpassed $25 billion in total transaction volume in under eight months since its launch, signaling accelerating adoption of tokenized assets among mainstream investors. Kraken disclosed the milestone on Thursday, noting that the figure covers trades executed across both centralized and decentralized venues, as well as minting and redemption activity. The jump represents a 150% increase from the $10 billion milestone reached in November, the point at which xStocks first crossed that threshold. The tokens are issued by Backed Finance, a regulated asset provider delivering 1:1 backed tokenized representations of publicly traded equities and exchange-traded funds, with Kraken serving as a primary distribution and trading venue. Since its 2025 debut, xStocks has expanded to more than 60 tokenized equities, including notable exposures to major U.S. technology leaders such as Amazon, Meta Platforms, Nvidia and Tesla. The momentum in on-chain activity has been a central driver of growth, with on-chain trading volume totaling $3.5 billion and more than 80,000 unique on-chain holders. On-chain trading, conducted directly on public blockchains, offers transparency and self-custody of assets, a contrast to trading confined to centralized exchange order books. The rise in on-chain participation suggests users are not only trading tokenized equities but also integrating them into broader decentralized finance ecosystems. Eight of the 11 largest tokenized equities by unique holder count are now part of the xStocks ecosystem, underscoring its growing market share in this nascent segment.

Key takeaways

• xStocks reached $25 billion in total transaction volume within eight months of launch, incorporating centralized, decentralized, minting, and redemption activity, a 150% rise from the $10 billion mark seen in November.
• On-chain activity is a major growth driver, with $3.5 billion in on-chain trading volume and more than 80,000 unique on-chain holders to date.
• At launch, xStocks offered more than 60 tokenized equities; eight of the 11 largest tokenized equities by holder count are now within the xStocks ecosystem.
• Tokenized real-world assets (RWAs) continue to gain traction, with tokenized RWAs up 13.5% in the past 30 days and tokenized stocks reaching a $1.2 billion market capitalization in December.
• The structure involves Backed Finance issuing 1:1 backed tokenized representations of publicly traded securities, while Kraken remains a key distribution and trading channel.

Sentiment: Bullish

Market context: The ongoing expansion of tokenized equities fits into a broader trend toward real-world asset tokenization, where liquidity, transparency, and cross-venue settlement are increasingly appealing to investors seeking alternative exposure beyond traditional markets. While the broader crypto market has experienced volatility, demand for tokenized RWAs and on-chain settlement continues to grow, reflecting a diversification dynamic within digital asset ecosystems.

Why it matters

The milestone achieved by xStocks matters for several reasons. First, it demonstrates tangible monetizable traction for tokenized equities in a relatively short window, suggesting that institutions and individual investors are testing the feasibility of on-chain settlement and custody for traditional securities. By reaching $25 billion in total volume, xStocks signals that tokenization is moving beyond a niche experiment toward a scalable model that could reshape how investors access equity exposure. The fact that nine-figure volumes are now a routine attribute of a regulated tokenized product adds a layer of credibility to the broader tokenization narrative.

Second, the architecture underpinning xStocks—where Backed Finance issues 1:1 backed tokenized shares and Kraken provides distribution and liquidity—highlights a credible pathway for regulatory-aligned asset digitization. The 1:1 backing is a key feature designed to address concerns about the legal and financial solidity of tokenized assets, while Kraken’s established trading infrastructure offers a familiar on-ramp for traders who want to access tokenized equities without abandoning traditional market workflows. This combination could help bridge traditional exchanges and on-chain markets, potentially accelerating adoption among both retail and institutional participants.

Third, the on-chain growth underscores a broader DeFi-enabled use case for tokenized equities beyond mere trading. With $3.5 billion in on-chain volume and more than 80,000 unique holders engaging on public blockchains, participants are increasingly integrating tokenized stocks into cross-contract and cross-chain strategies. This points to a maturing ecosystem where tokenized assets intersect with liquidity protocols, lending and yield-generating strategies, and other DeFi innovations. If on-chain participation continues to rise, it could spur new product possibilities — such as on-chain custody solutions, collateralization for loans, or liquidity provisioning keyed to tokenized stock tokens — expanding the utility of tokenized equities beyond price discovery alone.

Lastly, the data showing eight of the 11 largest tokenized equities by holder count being part of xStocks signals meaningful market share gains. It suggests that a core subset of tokenized equities is achieving stronger network effects, attracting more funds and holders, and potentially driving more issuers and asset classes into the tokenization fold. While tokenized RWAs have demonstrated resilience and growth in a challenging market environment, tokenized stocks now appear to be carving out a distinct, investable niche within the broader crypto and digital asset landscape.

The outlook remains contingent on several external factors, including regulatory clarity across jurisdictions and the pace of mainstream adoption. As tokenized assets evolve, observers will be watching for new tokenized equities, expanded custodial and settlement mechanisms, and additional platforms embracing tokenized securities with similar architectures to Backed Finance. The trend toward real-world asset tokenization is not a fleeting one; it represents a structural development in how markets can be accessed and transacted on-chain, potentially altering liquidity dynamics and the composition of investment portfolios for years to come.

What to watch next

• Continued growth in on-chain trading volume and the number of unique on-chain holders for xStocks, with a focus on whether momentum persists beyond the current milestone.
• Expansion of tokenized equities beyond the initial lineup of more than 60 tokens, including new assets and potential broadened access to additional market segments.
• Regulatory developments affecting tokenized securities and standardized on-chain settlement, including any jurisdictional approvals or clarifications that could facilitate broader deployment.
• Integration opportunities with DeFi ecosystems, such as enhanced liquidity provision, collateralization options, and new yield-based use cases for tokenized equities.

Sources & verification

• Kraken’s public disclosure detailing the $25 billion total transaction volume milestone and the scope of trade types (centralized, decentralized, minting, redemption).
• Launch specifics: xStocks initially offered over 60 tokenized equities, including exposure to Amazon, Meta Platforms, Nvidia and Tesla, as cited in the disclosure.
• On-chain activity metrics: $3.5 billion in on-chain trading volume and 80,000+ unique on-chain holders as reported by Kraken.
• Tokenized RWAs performance: 13.5% growth in tokenized RWAs over 30 days and Token Terminal data indicating tokenized stocks reached a $1.2 billion market cap in December.

Momentum for tokenized equities grows as xStocks hits $25B in total volume

Kraken’s tokenized equities platform, xStocks, has demonstrated unaudited momentum by surpassing $25 billion in total transaction volume less than eight months after launch. The achievement spans a blend of centralised and decentralised trading activity, as well as the minting and redemption of tokenized assets. In a market environment where crypto prices have fluctuated, the acceleration in tokenized equity volumes showcases growing investor curiosity about on-chain settlement, transparent asset representation, and regulated issuance models. The milestone is framed by the fact that xStocks began life in 2025 with a catalogue of more than 60 tokenized equities, a roster that included shares tied to Amazon, Meta Platforms, Nvidia and Tesla, among others.

According to Kraken, the $25 billion figure captures trading that occurs across both traditional exchange venues and decentralized trading channels, reflecting a broader push to digitize publicly traded securities. The platform’s issuer, Backed Finance, provides 1:1 backed representations of the underlying stocks and ETFs, offering a structured path for investors to own tokenized shares with clearly defined backing. Kraken positions itself as a gateway for such instruments, handling distribution and trading while Backed Finance shoulders the task of token issuance and alignment with real-world assets. This arrangement aligns with a growing appetite for regulated tokenized products that can be traded with familiar market mechanics while benefiting from the transparency of blockchain settlement.

On-chain activity has emerged as a major growth lever. With $3.5 billion in on-chain volume and more than 80,000 unique holders interacting with tokenized equities on public blockchains, the ecosystem is differentiating itself from conventional off-chain trading. On-chain participation implies that investors are comfortable with self-custody and direct visibility into transactions, a dynamic that complements the more traditional off-chain trading seen on centralized exchanges. The increased on-chain activity is also indicative of broader market interest in DeFi-native use cases for tokenized assets, including potential liquidity access, programmable settlement, and cross-venue arbitrage opportunities that leverage the transparent, verifiable nature of blockchain records.

Competitive dynamics within tokenized equities become more meaningful as data show eight of the 11 largest tokenized equities by unique holder count now belong to the xStocks ecosystem. This concentration hints at a rising market share within the tokenized equities space, where a core group of assets is attracting a growing community of holders. The development cements xStocks’ role as a leading force in the early-stage tokenization wave, signaling to issuers and investors that there is tangible, scalable demand for tokenized representations of real-world assets.

Beyond the headline numbers, the broader context underscores a market increasingly comfortable with tokenized real-world assets (RWAs). Tokenized RWAs grew by 13.5% in value over the last 30 days, a period when the overall crypto market moved lower by roughly $1 trillion in market capitalization. Market observers have likened tokenized stocks to a potential “stablecoin moment” for asset tokenization—where rapid early adoption leads to widespread acceptance and predictable use cases. Supporting data from Token Terminal shows tokenized stocks reached a market capitalization of about $1.2 billion in December, marking a notable emergence from a period of minimal presence just half a year prior. This trajectory suggests a broadening base of participants and a more robust, diversified ecosystem for tokenized asset products.

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Solomon urges strict US crypto rules as CLARITY Act momentum builds.

Goldman Sachs CEO David Solomon called for the United States to establish a clearly defined, rules-based framework governing crypto market operations during remarks at the World Liberty Forum in Mar-a-Lago on Wednesday.

Speaking in an interview with CNBC, Solomon stated that lawmakers should take a long-term view when shaping crypto legislation. The banking executive said the US banking system must function alongside emerging technologies rather than be displaced by them.

Solomon rejected the notion that cryptocurrency can thrive without regulatory oversight. “If there are people who think we are going to operate in this environment without rules, they are probably wrong, and they should move to El Salvador,” Solomon said, according to CNBC.

The CEO indicated Goldman Sachs maintains active involvement in digital asset-related areas, including digitization and tokenization. However, he noted that digital assets represent a relatively small portion of the firm’s overall operations.

Solomon’s comments came amid ongoing debate in Washington over proposed crypto market structure legislation, commonly referred to as the CLARITY Act. Senator Bernie Moreno acknowledged earlier Wednesday that he retains concerns about the bill, but expressed optimism that Congress could pass the measure by April, according to reports.

Moreno dismissed concerns that potential Democratic gains in November’s midterm elections could jeopardize the legislation. The senator predicted Republicans would maintain control of both chambers of Congress.

Ripple CEO Brad Garlinghouse suggested on Tuesday that the CLARITY Act could advance quickly toward passage once disputes over stablecoin rewards between banking and crypto sectors are resolved. Garlinghouse estimated an 80% probability the market structure bill will be signed into law by the end of April, according to his public statements.