Payward, the parent company of cryptocurrency exchange Kraken, has partnered with fintech firm GTN to launch xStocks in Hong Kong, the United Kingdom, Europe and South Korea, according to a company statement Tuesday.
xStocks are blockchain-based representations of publicly traded company shares. The digital instruments track the value of traditional equities while being recorded on distributed ledger technology.
The expansion follows Kraken’s October 2024 introduction of xStocks to US users. The product allows users to trade tokenised versions of stocks from major American companies through Kraken’s platform.
How xStocks Work
Under the partnership structure, GTN will serve as the regulated broker-dealer handling the purchase of underlying securities. Payward will provide the technology infrastructure that enables blockchain-based trading of the stock representations.
Users will be able to trade xStocks during traditional market hours as well as after-hours sessions. The tokens are designed to reflect real-time price movements of the corresponding securities.
The arrangement separates the regulatory responsibilities from the technological delivery. GTN holds the necessary licenses to operate as a securities intermediary in the target jurisdictions, while Payward manages the blockchain layer and user interface.
Regulatory Framework
The four-market expansion represents an attempt to navigate varying regulatory approaches to tokenised securities across different jurisdictions.
Hong Kong has actively courted cryptocurrency and blockchain businesses since 2023, when it introduced a licensing regime for virtual asset service providers. The city has positioned itself as a regional hub for digital asset activity.
European markets operate under the Markets in Crypto-Assets regulation, which took full effect in December 2024. The framework establishes rules for crypto service providers across the European Union.
The UK is developing its own regulatory approach to crypto assets, separate from EU frameworks following Brexit. South Korea maintains strict licensing requirements for cryptocurrency exchanges but has shown openness to regulated digital asset products.
Real World Asset Tokenisation
The xStocks launch forms part of a broader industry trend toward tokenising traditional financial instruments on blockchain infrastructure.
Proponents argue that blockchain-based trading can reduce settlement times, lower transaction costs and enable fractional ownership of expensive assets. Critics note that tokenised securities still require traditional regulatory oversight and custody arrangements.
Several major financial institutions have begun experimenting with tokenised assets. BlackRock launched a tokenised money market fund on Ethereum in March 2024. JPMorgan operates a blockchain-based payment system for institutional clients.
The tokenised securities market remains small compared to traditional equity markets. Most activity to date has focused on proof-of-concept projects rather than large-scale commercial deployment.
Market Positioning
Kraken’s parent company faces competition from both traditional brokerages and other cryptocurrency platforms exploring similar products.
eToro offers tokenised stocks in certain jurisdictions. Robinhood has discussed blockchain-based securities but has not launched a product. FTX had offered tokenised equities before its collapse in November 2022.
The success of xStocks in new markets will depend on regulatory approval timelines, user adoption rates and the operational reliability of the underlying infrastructure.
Payward did not provide a specific launch date for the international expansion. The company said rollout timing would depend on obtaining necessary regulatory approvals in each jurisdiction.