SKN | Kraken Expands xStocks With 200 UK and European Equities as Tokenized Assets Surpass $1.1 Billion

Key Points:

• Payward, Kraken’s parent company, has added more than 200 UK and European equities to its xStocks platform, including all 40 companies in Germany’s DAX index.
• xStocks now reports more than $1.1 billion in assets, over $45 billion in cumulative transaction volume and more than 550,000 holders.
• Each token is backed by an underlying share held with a regulated custodian, but holders receive economic exposure rather than direct ownership of the company. UK and U.S. investors remain excluded.

Kraken parent company Payward is expanding its tokenized equities business with the addition of more than 200 UK and European stocks to its xStocks platform, marking a significant step in connecting traditional securities with blockchain-based financial infrastructure. The expansion comes as xStocks reports more than $1.1 billion in assets, highlighting growing demand for tokenized exposure to conventional financial markets. For institutional and crypto investors, the development reflects an increasingly competitive effort to bring global equities into digital-asset ecosystems while navigating the legal distinction between token ownership and shareholder rights.

European Expansion Broadens xStocks’ Market Coverage

The latest rollout includes more than 200 companies listed in the United Kingdom and European Union, including all 40 constituents of Germany’s DAX index. Major companies represented include software provider SAP, industrial manufacturer Siemens and insurer Allianz. The expansion moves xStocks beyond its original focus on U.S.-listed equities and exchange-traded funds.

The new assets are available through Kraken and participating platforms in the xStocks Alliance. Investment firm GTN provides the brokerage infrastructure, trade execution and custody arrangements for the underlying traditional shares. The tokens can also be held in compatible cryptocurrency wallets and supported blockchain ecosystems.

The expansion takes the platform’s total offering beyond 1,500 tokenized assets, including stocks, ETFs and IPO-related products. Since launching in June 2025 with approximately 60 U.S. equities, xStocks has developed into a broader international tokenization framework. Payward has also indicated that hundreds of Hong Kong-listed stocks could be introduced in the coming weeks.

$1.1 Billion in Assets Reflects Growing Market Participation

Payward reported that xStocks now holds more than $1.1 billion in assets, has processed over $45 billion in cumulative transaction volume and counts more than 550,000 unique holders. These company-reported figures indicate increasing participation in blockchain-based representations of traditional securities.

The platform’s growth is notable against its earlier milestones. Payward reported that xStocks surpassed $1 billion in assets in October 2026, compared with approximately $225 million in February. The latest expansion therefore builds on an already substantial increase in reported assets and transaction activity.

However, cumulative transaction volume should not be interpreted as assets held or net capital inflows. Similarly, the number of holders does not necessarily indicate the number of active investors. Assessing the platform’s longer-term commercial significance will require monitoring recurring activity, liquidity and the distribution of assets across its supported markets.

Share-Backed Tokens Do Not Confer Direct Ownership

An important distinction separates xStocks from conventional equity ownership. Each token is backed by an underlying share held with a regulated custodian, providing exposure to the share’s price performance. However, token holders do not directly own the underlying company or automatically receive the full legal rights associated with conventional shareholders.

In particular, holders do not receive ordinary direct voting rights or a direct legal claim to the underlying shares. For supported tokens, eligible holders have been able to submit proxy voting preferences through Broadridge since August. Dividend value is reinvested into additional tokens rather than distributed as cash.

This structure differs from tokenization models designed to preserve the same shareholder rights as traditional securities. Investors therefore need to assess the legal structure, issuer obligations, custody arrangements and distribution terms of each product rather than treating every tokenized stock as equivalent to owning a conventional share.

Regulatory Access Will Determine the Next Expansion Phase

Despite the addition of British and European companies, xStocks remains unavailable to investors in both the United Kingdom and the United States. The expansion therefore targets eligible investors in other jurisdictions rather than immediately opening access to the domestic markets where many of the underlying companies are listed.

Payward’s September agreement with the London Stock Exchange provides another potential distribution channel. The exchange plans to introduce xStocks trading through its LSE 24 platform in 2027, subject to regulatory approval. The arrangement could connect tokenized securities with established exchange infrastructure, although its eventual operating model and investor eligibility will remain important considerations.

For investors, the next milestones include the planned Hong Kong expansion, further institutional partnerships and progress toward the proposed LSE 24 launch. The central question is whether xStocks can convert its growing asset base into sustainable liquidity and broader regulated distribution. Its expansion demonstrates the commercial potential of tokenized equities, but long-term adoption will depend on legal clarity, investor protections and the practical value of blockchain-based access to traditional markets.