CoinDesk
Kraken parent Payward is adding more than 200 tokenized U.K. and European stocks to xStocks, including all 40 companies in Germany's DAX index. Payward says the platform holds more than $1.1 billion in assets. The additions expand an offering previously centered on U.S. stocks.
Why it matters
The tokens track stock prices and are backed by shares held with a regulated custodian, but they do not give holders ownership of the underlying companies. GTN handles trade execution and custody, while eligible users can buy the tokens through Kraken or partner platforms and hold them in crypto wallets.
Eligible holders of supported tokens can submit proxy voting preferences through Broadridge. Dividend value is reinvested in additional tokens rather than paid in cash.
Market impact
The expansion adds companies including SAP, Siemens and Allianz, though the tokens remain unavailable to investors in the U.K. and U.S. Payward also plans to add hundreds of Hong Kong-listed stocks in the coming weeks.
The London Stock Exchange plans to list xStocks on its LSE 24 platform in 2027, subject to regulatory approval. In the U.S., an SEC innovation exemption for tokenized securities venues requires tokens to carry the same rights as traditional shares of an equivalent class and excludes third-party securities offering synthetic stock exposure.
Frequently asked questions
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Which European companies are included in the xStocks expansion?
The additions include all 40 companies in Germany's DAX index, including SAP, Siemens and Allianz.
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Do xStocks holders own the underlying company shares?
No. The tokens track stock prices and are backed by shares held with a regulated custodian, but they do not give holders ownership of the underlying companies.
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Can investors in the U.K. or U.S. buy the new tokens?
The tokens remain unavailable to investors in both the U.K. and the U.S.
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How are dividends and voting preferences handled for xStocks?
Dividend value is reinvested in additional tokens rather than paid in cash. Eligible holders of supported tokens can submit proxy voting preferences through Broadridge.
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When does the London Stock Exchange plan to list xStocks?
The exchange plans to list xStocks on its LSE 24 platform in 2027, subject to regulatory approval.
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