Nasdaq and Crypto-Exchange Kraken Partner to Bring Tokenized Stocks to Global Markets
Summary
Nasdaq and Kraken have partnered to connect traditional stock markets with blockchain through the xStocks platform, enabling the tokenization of equities. This innovation aims to enhance market access and efficiency while ensuring compliance with regulations.
Key Insights
What are tokenized stocks in the context of Kraken's xStocks?
Tokenized stocks are digital tokens issued on a blockchain, such as Solana, that represent real-world shares of companies like Apple or Tesla, backed 1:1 by actual shares held in custody by a regulated partner like Backed Finance, providing price exposure without traditional shareholder rights.
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Who can access Kraken's xStocks and what rights do holders get?
xStocks are available to non-U.S. retail clients in over 185 countries, excluding the US, EU, UK, Canada, Australia, and other restricted regions; holders get price exposure and auto-reinvested dividends but no voting or other shareholder rights.
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