Kraken Extends xStocks to Trust Wallet’s 200 Million Users
What the Partnership Brings
Kraken, one of the largest global cryptocurrency platforms, has partnered with Trust Wallet, a widely used self-custody crypto wallet, to expand access to Backed’s xStocks product. The integration, announced Friday, is framed as a step toward bringing tokenized equities into the hands of millions of retail and institutional users worldwide.
Kraken, which serves as the main distribution partner for xStocks, said the collaboration would extend tokenized equities to over 200 million Trust Wallet users. Through the integration, users can purchase and hold 60 tokenized equity products using multiple fiat currencies. Deposits and withdrawals will be supported across several blockchains, including ETH, Solana, Tron, and BNB Chain.
“This is more than integration — it’s a paradigm shift,” said Arjun Sethi, Kraken’s Co-CEO. “We’re accelerating the move to a future where global markets operate without borders, without barriers, and with the identical openness and accessibility as the internet itself.”
Investor Takeaway
Tokenized Equities and Regulatory Limits
The integration highlights the growing interest in tokenized financial products but also underscores ongoing regulatory challenges. Securities are regulated diversely from cryptocurrencies, and jurisdictional requirements vary significantly. Tokenized stocks, even when blockchain-based, remain “bound by securities laws,” according to Ross Shem, COO of tokenization firm Stobox. He stressed that these products must comply with Know Your Customer (KYC) and investor protection rules.
Kraken itself clarified that xStocks are not available in the U.S. or to U.S. persons. Restrictions also apply in other jurisdictions, with the initial rollout excluding the United States, United Kingdom, Canada, and Australia. That means the 200 million user figure in Kraken’s marketing likely exaggerates the actual number of eligible participants at launch.
Eowyn Chen, CEO of Trust Wallet, said the partnership bridges the gap between Web3 and traditional markets. Adam Levi, co-founder of Backed, emphasized that cross-chain accessibility is being treated as a “public excellent,” making tokenized equities more portable and interoperable across ecosystems.
Adoption and Market Impact
Since their debut, xStocks have already generated more than $4 billion in combined trading volume across centralized and decentralized platforms. The products provide tokenized exposure to U.S. equities and have gained traction among EU-based clients, where Kraken has expanded availability in most countries.
The ability to trade tokenized equities directly within Trust Wallet could assist mainstream the concept by making access as seamless as holding crypto. However, critics caution that until securities regulators establish unified frameworks for tokenized assets, adoption will remain geographically fragmented.
Analysts note that while tokenization solves technical issues of settlement speed and accessibility, regulatory compliance will determine whether xStocks evolve into a global asset class. The exclusion of key markets like the U.S. limits immediate scale, but successful adoption in Europe and other permitted regions could set the stage for gradual expansion.
Investor Takeaway
What’s Next for Kraken and Tokenization
The partnership signals Kraken’s intent to grow its role in the emerging tokenization economy, which analysts project could eventually cover trillions in global assets. By distributing xStocks through Trust Wallet, Kraken gains exposure to a large self-custody user base — a strategic move as platforms face mounting pressure to decentralize custody and reduce reliance on centralized platforms.
For Trust Wallet, the deal diversifies its utility beyond crypto assets and DeFi, strengthening its positioning as a bridge between Web3 and traditional finance. For Backed, it represents broader distribution of its collateralized, onchain financial products across multiple networks.
The announcement aligns with a broader wave of tokenization initiatives, with banks, asset managers, and fintech firms racing to offer blockchain-native representations of equities, bonds, and funds. Kraken’s integration with Trust Wallet could be an ahead example of how large-scale adoption begins — through familiar crypto platforms offering regulated exposure to traditional markets.
