The race to bring Wall Street onto the blockchain has just accelerated. Kraken, Backed, and BNB Chain have joined forces to introduce tokenized stocks to the vibrant crypto ecosystem, propelling xStocks into the mainstream.
On July 9, Kraken, the crypto exchange, announced a strategic partnership with Backed, a tokenization firm, and BNB Chain, expanding its xStocks offering to one of the largest blockchain networks in terms of daily users.
This integration will allow Kraken clients outside the U.S. to deposit and withdraw tokenized U.S. equities, such as Apple’s AAPLx and Tesla’s TSLAx, as BEP-20 tokens in the upcoming weeks. This move follows the initial launch of xStocks on Solana last month, marking another milestone in Kraken’s efforts to revolutionize the circulation of public equities in the digital economy.
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Why BNB Chain could be the turning point for tokenized stocks
The decision to introduce xStocks to BNB Chain signifies a strategic expansion initiative by Kraken and Backed. The two companies cited the network’s scale and efficiency as the reasons for their selection.
With approximately $10 billion in total value locked and a highly active user base in the crypto space, BNB Chain offers a significant amount of liquidity and accessibility, essential elements for the traction of tokenized equities.
Backed’s xStocks will now be available as BEP-20 tokens, facilitating seamless transfers between Kraken’s centralized platform and BNB Chain’s decentralized ecosystem. Traders stand to benefit from lower fees compared to Ethereum, faster settlement times than traditional markets, and compatibility with DeFi protocols.
The objective, as stated by Kraken Co-CEO Arjun Sethi, goes beyond expanding distribution—it aims for composability. “Expanding to BNB Chain reinforces our fundamental belief that tokenized equities are not merely digital representations of traditional assets—they represent a fundamental upgrade to the financial system itself,” he emphasized.
Kraken’s decision to leverage BNB Chain also reflects a deliberate move towards global outreach. While the exchange initially introduced over 60 tokenized stocks on Solana last month, targeting users in 140 countries, BNB Chain’s presence in emerging markets like Southeast Asia and Latin America could provide opportunities for retail investors with limited access to U.S. equities.
According to Sarah Song, BNB Chain’s Head of Business Development, “Tokenizing real-world assets on BNB Chain is a significant step towards making global finance more accessible and transparent.” The chain’s infrastructure, including EVM compatibility and high throughput, reduces barriers for users who may encounter challenges with traditional systems.
However, the level of adoption remains uncertain. On-chain data from a Dune Analytics dashboard monitored by Hashed shows a trading volume of just $32.8 million in xStocks to date, a modest figure, although Kraken’s internal exchange volume could potentially boost this number significantly.
The true test lies in whether these assets can offer utility beyond speculative trading. Adam Levi, co-founder of Backed, envisions xStocks becoming “the standard for tokenized equities” by integrating with lending protocols, derivatives platforms, and other DeFi fundamentals. Should this vision materialize, tokenized stocks could transition from synthetic proxies to core financial instruments.
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