CoinDesk
Payward, the parent of crypto exchange Kraken, is expanding its xStocks tokenized-equities platform beyond U.S. names into Hong Kong, U.K., European and South Korean listings, with Hong Kong going live first through a partnership with investment infrastructure provider GTN. The rollout lands as competition to bring global stock markets onchain accelerates among crypto platforms, traditional market infrastructure players and brokerages.
xStocks launched last year with tokenized U.S. equities and ETFs and now supports more than 500 tokenized securities, with Payward citing over $35 billion in trading volume and nearly 200,000 holders on the platform. The products remain unavailable to U.S. investors while the company expands into overseas markets subject to regulatory approvals.
Why it matters
Until now, tokenized equity offerings have largely been replicas of U.S. blue-chips such as Nvidia, Apple and Tesla. Adding Hong Kong and South Korea gives onchain investors access to Asian names tied to the AI supply chain that have become popular with global retail traders, while the GTN tie-up gives Payward a regulated execution, custody and recordkeeping rail across more than 90 markets. Citi has estimated tokenized securities could grow into a $5.5 trillion market by 2030, including $2.6 trillion in tokenized equities, and the U.S. market plumbing is already moving: the DTCC has begun testing tokenized securities infrastructure, while Nasdaq and the New York Stock Exchange have started their own tokenization initiatives.
Market impact
The competitive shape of tokenized equities is consolidating fast. Payward joins Robinhood, which earlier this month broadened its own tokenized-stock offering beyond Europe, and Coinbase, which is preparing its own stock-token product, in pushing tokenized shares toward the mainstream.
Frequently asked questions
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What is xStocks and how does Payward's expansion change it?
xStocks is Payward's tokenized-equities framework, launched last year with U.S. stocks and ETFs and now expanding into Hong Kong, U.K., European and South Korean listings via a partnership with GTN. The platform already supports over 500 tokenized securities with $35B+ in cumulative trading volume and nearly 200,000…
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Why is GTN central to the xStocks rollout into Asia?
GTN connects to more than 90 global markets and will provide execution, custody and recordkeeping for the securities backing the tokens. Subject to regulatory approvals, GTN also plans to distribute xStocks products to its institutional client base.
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Are U.S. investors able to trade xStocks now?
No. xStocks products remain unavailable to U.S. investors as Payward expands into overseas markets. Hong Kong is expected to go live first, with U.K., European and South Korean equities following subject to regulatory approvals.
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How does the xStocks move fit the broader tokenized-equities race?
Payward is entering a fast-consolidating field: Robinhood earlier this month broadened its own tokenized-stock offering beyond Europe, Coinbase is preparing its own stock-token product, and the DTCC, Nasdaq and NYSE are running their own tokenization initiatives. Citi estimates tokenized securities could grow into a…
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Could xStocks expand beyond equities under the GTN partnership?
Yes. Payward said the GTN partnership also lays the groundwork for expanding xStocks beyond equities into other tokenized asset classes, using GTN's institutional rails as the distribution and infrastructure layer once approvals are in place.
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