Kraken Parent Payward Opens Tokenized IPO Access for Retail Investors

Payward Services, a company affiliated with Kraken, has announced a new program that will allow retail investors to participate in US initial public offerings (IPOs) at the original offering price through tokenized equities.

The initiative will roll out in the coming weeks and will be available to users of Kraken and selected members of the xStocks Alliance. Investors will be able to express interest in upcoming IPOs before companies go public and receive allocations of tokenized shares once the stock lists.

These shares will be issued at the IPO price and backed 1:1 by real underlying stocks held in custody by a regulated entity, ensuring direct exposure to traditional equity markets through blockchain-based infrastructure.

How Tokenized IPO Allocation Will Work

Under the new system, participating platforms will open an indication of interest window before an IPO. Users can submit non-binding requests for shares within the expected pricing range.

Payward Services will then combine demand from different platforms and work with underwriting partners to finalize allocations on the day of listing. Once approved, tokenized shares will be distributed to investors through supported exchanges.

This structure aims to replicate traditional IPO allocation processes while making them accessible to a wider global retail audience.

Expanding Access to Public Markets

Payward Services said the goal is to remove long standing barriers that have limited IPO access to institutional investors and high-net worth individuals.

According to the company, the system will allow investors from regions such as Latin America, Europe, and Asia to participate in US IPOs without needing traditional brokerage accounts.

Mark Greenberg, global head of Payward Services, said that IPO access has historically depended on geography and wealth, and the new system is designed to make it more inclusive.

Tokenization Trend Accelerates Across Financial Markets

The launch reflects the growing global trend toward real-world asset (RWA) tokenization. Market estimates from Bernstein Research suggest the RWA sector has reached about $51 billion after expanding sharply over the past year.

Payward Services also reported strong early activity in its xStocks ecosystem, with more than $30 billion in transaction volume processed in its first year, including over $6 billion settled onchain across more than 125,000 users.

The move comes as major crypto platforms continue expanding into tokenized stocks, ETFs, and private market assets, bridging the gap between traditional finance and blockchain-based trading systems.