Apple, Tesla, Nvidia said to be offered as tokenized stocks on crypto exchange Kraken

Crypto exchange Kraken is planning to start offering tokenized versions of Apple (NASDAQ:AAPL), Tesla (NASDAQ:TSLA), Nvidia (NASDAQ:NVDA) and other high-profile stocks for its non-U.S. customers, according to a media report dated Thursday, a move that would further blur the line between traditional finance and digital assets.

These so-called tokenized equities give non-U.S. Kraken users easier access to U.S. stocks, with 24/7 trading that continues even when U.S. markets are closed — just like bitcoin (BTC-USD) and ether (ETH-USD).

The launch is expected to arrive in the weeks ahead, the Wall Street Journal reported, with the tokens debuting in Europe, Latin America, Africa and Asia.

Global firms are increasingly embracing tokenized assets, drawn by the promise of lower trading costs and greater transparency than legacy systems offer. Tokenization involves converting real-world assets, such as property or stocks, into digital tokens that exist on a blockchain.

U.S.-based Kraken is planning to tokenize more than 50 stocks and exchange-traded funds, such as the index fund SPDR S&P 500 ETF (NYSEARCA:SPY), the WSJ said. The tokens, which Kraken is calling “xStocks,” will trade on the Solana blockchain network.

Each xStocks token represents a real share, with Backed Finance — Kraken’s partner company — buying the actual stocks to back the tokens, according to the newspaper. Holders will be able to redeem the tokens for their equivalent cash value.

The move leaves Kraken in deeper competition with stock and crypto trading app Robinhood Markets (HOOD), which is reportedly working on a blockchain platform to let European-based retail investors trade U.S. assets like equities.