Kraken xStocks Secures Cyprus License for Tokenized Stocks

Published: 2025-08-07 07:18:17 |

Kraken’s xStocks has secured a CySEC license and MiFID II approval through a new Cyprus entity, paving the way for compliant tokenized stocks in Europe. Each xStocks token is backed 1:1 by real shares held in custody, ensuring full collateralization. The open, permissionless tokens initially launched on Solana, with BNB Chain and Injective soon to follow, allowing seamless multi-chain trading. Due to unclear U.S. regulations, xStocks is currently unavailable to American users but plans to enter the U.S. market after obtaining necessary approvals. The project’s alliance model invites other exchanges—including Binance, Coinbase, and Gate.io—to issue and trade xStocks via cooperation with Backed. Future plans include expanding the token lineup from 61 to several hundred tickers, introducing leverage, lending uses, perpetual contracts, and Pre-IPO equity tokenization. By prioritizing accessibility and regulatory compliance, xStocks aims to become a Web3 financial infrastructure for real-world asset exposure. Tokenized stocks are positioned as a complementary bridge between traditional markets and decentralized finance, offering global users synthetic equity exposure without direct stock ownership.

Bullish

The news that xStocks secured a CySEC license and MiFID II approval significantly reduces regulatory uncertainty—a key barrier for tokenized stocks. By launching in Europe and planning U.S. entry post-approval, Kraken’s open, permissionless model is poised to attract liquidity across Solana, BNB Chain, Injective, and major CEX/DEX platforms. Historical parallels, such as increased trading volumes following DeFi projects’ regulatory compliance in Europe, suggest a bullish impact. In the short term, traders may see higher demand for associated chains (SOL, BNB, INJ) and RWA tokens as liquidity flows in. Long term, establishing tokenized stocks as a compliant Web3 infrastructure will likely boost DeFi adoption, expand real-world asset exposure, and drive sustainable growth in the crypto market.