xStocks aims to bridge traditional markets and Web3, but regulatory limits remain
Kraken has announced a partnership with Trust Wallet to expand access to xStocks, the tokenized equities product developed by Backed. The move is pitched as a step toward bringing borderless stock trading to a wider audience, though regulatory restrictions continue to shape who can participate.
Expanding Reach Through Trust Wallet
With over 200 million global users, Trust Wallet will now allow its community to buy and hold 60 different tokenized equities backed by collateralized onchain assets. These stocks can be purchased with local fiat currencies and transferred across multiple blockchains, including Ethereum, Solana, BNB Chain, and Tron.
Kraken co-CEO Arjun Sethi described the collaboration as transformational:
“This is more than integration — it’s a paradigm shift. We’re accelerating the move to a future where global markets operate without borders, without barriers, and with the same openness and accessibility as the internet itself.”
Trust Wallet CEO Eowyn Chen added that the deal helps “bridge the gap between Web3 and traditional markets,” while Backed co-founder Adam Levi emphasized that cross-chain accessibility should be treated as “a public good.”
Regulatory Barriers Remain
Despite the ambitious messaging, xStocks are not universally available. Kraken confirmed the service is not accessible in the United States or to U.S. persons, and additional geographic restrictions apply.
Industry voices caution that tokenized securities cannot escape regulation. Ross Shem, COO of tokenization firm Stobox, previously noted that:
“The only thing they share with crypto is the underlying technology, not the ethos, not the regulation, not the culture.”
This means investors must still undergo KYC checks and comply with securities laws, limiting the true reach of Kraken’s “200 million users” claim.
Market Growth Signals
Even with restrictions, demand for tokenized equities appears strong. According to Kraken, xStocks have already generated more than $4 billion in trading volume across centralized and decentralized exchanges since their debut.
The expansion to Trust Wallet marks another step in bringing tokenized U.S. equities to a global audience, but its success will depend on how well the product can navigate regulatory hurdles while meeting the appetite for new forms of digital investment.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.