Key Insights
- Kraken is bringing its tokenised equities service xStocks to the Tron blockchain with Backed and TRON DAO.
- The move is the third blockchain integration in under 60 days, after Solana and BNB Chain.
- The upside for Tron users is cheap and fast access to tokenised stocks like Apple and Tesla.
The Tron-Kraken partnership is already affecting how users access tokenised equities. In particular, Kraken has just expanded its popular xStocks service to the Tron blockchain. It is also collaborating with TRON DAO and tokenisation startup Backed.
This is the third blockchain integration for xStocks in less than two months. By adding Tron to its list of offerings, Kraken aims to improve the accessibility of RWAs for users worldwide.
What Are xStocks and How Do They Work?
xStocks are similar to tokenised representations of well-known equities like Apple, Nvidia, and Tesla. They are much like the real thing, but they are tokenised and give traders access to U.S. markets. They do not have to access these products through traditional brokerage channels.
More importantly, each xStock is backed 1:1 by the underlying equity. This ensures that they remain transparent and verifiable in terms of collateral. However, they are structured as debit instruments for regulatory compliance.
This means that they are structured as debt instruments for regulatory compliance. In other words, holders do not have to receive rights like voting or dividends.
The benefits of this development include 24/7 trading without market-hour restrictions. Additionally, Fractional ownership allows investors to hold smaller portions of high-value stocks.
Why Tron Matters for xStocks
Tron offers high transaction throughput and very low fees. This makes this kind of use case very appealing. Backed by Kraken, by deploying xStocks as TRC-20 tokens, users can access value within the Tron network.
According to TRON founder Justin Sun, in an X post, tokenised equities represent a natural bridge between trad-fi and blockchain.
He said the move will allow more people worldwide to invest in popular stocks. The market will be faster and more inclusive than before. Kraken users in ineligible regions can also access direct deposits and withdrawals of xStocks via the Tron network.
Industry Market Context
The expansion comes at a time when tokenised assets are starting to become more popular across the industry. Since launching in June, xStocks have already generated over $2.5 billion in combined centralised and decentralised exchange trading volume.
Arjun Sethi is the co-CEO of Kraken. He noted that Kraken’s expansion into three blockchains in under 60 days shows the advantage of building with openness in mind.
The company is tapping into multiple platforms and is aiming to reach a much wider audience. Backed co-founder Adam Levi added that Tron’s standing in stablecoin transfers works well with the growth of tokenised equities. Both rely on efficiency in high-volume transactions.
Competition in Tokenised Assets
Kraken is not the only company that has a horse in the race to tokenise traditional assets. Robinhood recently launched its version of tokenised stocks on the Arbitrum Layer 2 network. It also collaborated with firms like OpenAI and SpaceX.
This push shows a general trend in crypto, where equity markets are now blended with blockchain-based solutions. Platforms are now competing to attract traders who want round-the-clock access to tokenised securities by making them available on multiple chains.
So far, Kraken hasn’t yet confirmed which networks are following. However, it is focused on expanding accessibility, lowering costs, and making these products as transparent as possible.
The cross-border demand for tokenised markets is expected to grow further over the next few years. Tron is setting itself up as a hub for such applications.
