Kraken (Payward) Expands Tokenized Stocks to Hong Kong, London, and Seoul — Global Market Tokenization Accelerates
The tokenization of real-world assets (RWA) is reaching a new milestone. Payward, the parent company of the Kraken exchange, announced this Wednesday, July 22, the international expansion of its xStocks platform beyond U.S. equities. Hong Kong, the United Kingdom, Europe, and South Korea are in its sights — a move that promises to further bridge traditional finance (TradFi) with blockchain technology.
xStocks: Global Stocks on the Blockchain
Until now, xStocks — launched in 2025 — focused on the most popular U.S. stocks: Nvidia (NVDA), Apple (AAPL), Tesla (TSLA), and other market giants. The platform claims over 500 tokenized securities, $35 billion in cumulative volume, and nearly 200,000 holders. Now, the ambition is to cover international markets.
To achieve this, Payward has partnered with GTN, an investment infrastructure provider connected to more than 90 global markets. GTN will handle execution, custody, and record-keeping for the underlying securities backing the tokens. “The largest asset class that has not yet been tokenized is the rest of the world,” said Mark Greenberg, Global Head of Services at Payward. “One asset at a time, we are bringing global financial markets onto the blockchain, until geography becomes irrelevant for investing.”
A Sector in Full Competitive Ferment
Payward is not alone in this niche. Competition is intensifying in the tokenized stock market:
- Robinhood (HOOD) expanded its tokenized stock offering beyond European users in early July.
- Coinbase (COIN) is also preparing to launch stock tokens.
- DTCC (Depository Trust & Clearing Corporation), the backbone of U.S. securities markets, is testing a tokenization infrastructure.
- Nasdaq and the New York Stock Exchange (NYSE) have also initiated tokenization projects.
This race reflects a growing conviction: tokenization — the process of representing traditional assets as blockchain tokens — could modernize financial markets by offering faster settlements, 24/7 trading, and more efficient asset circulation.
A Potential Market of $5.5 Trillion
The projections are staggering. Citigroup estimates that tokenized securities could represent a market of $5.5 trillion by 2030, of which $2.6 trillion would be for tokenized stocks alone. The expansion of xStocks to Asian and European markets is strategic: it provides access to companies linked to the AI supply chain, which are highly sought after by global retail traders.
Hong Kong, in particular, is a major financial hub for semiconductors and emerging technologies. Extending to Asian stocks allows international investors to gain exposure to these sectors without going through traditional channels. This move also aligns with growing demand for diversified, round-the-clock access to equities that are not easily available through conventional brokerages in certain regions.
The Debate on the Issuance Model
This announcement reignites a fundamental debate within the industry: how should tokenized stocks be issued?
xStocks relies on third-party issuers who purchase and hold the traditional shares before creating the corresponding tokens. This is a pragmatic approach, but it has drawn criticism from those who believe that securities should be issued natively on the blockchain, without intermediaries. The core argument is that native issuance ensures greater transparency, reduces counterparty risk, and fully leverages the decentralized nature of distributed ledger technology.
The debate is attracting increasing attention from regulators. Wall Street transfer agents recently pressured the SEC, warning about the risks that third-party tokens pose to market integrity. Key questions remain unresolved: Who will actually hold the underlying assets? How can reserve transparency be guaranteed? These issues are central to the future legitimacy and adoption of tokenized securities.
Perspective: Toward Borderless Financial Markets
The expansion of xStocks illustrates a deep-seated trend: decentralized finance and traditional finance are converging in an irreversible manner. The geographical barriers that have fragmented financial markets for centuries are gradually fading away. By enabling investors to trade stocks from any global market through a crypto wallet, with 24/7 liquidity and reduced fees, tokenization is reshaping the investment landscape.
For retail investors, the promise is compelling: access to stocks from any world market via a crypto wallet, with 24/7 liquidity and lower fees. For institutional players, it represents an opportunity to modernize aging infrastructure, streamline back-office operations, and unlock new forms of capital efficiency. Yet the path forward is not without obstacles.
The key question remains how national regulators will welcome this new frontier. The regulatory approvals required for xStocks’ expansion in Europe, the United Kingdom, and South Korea will serve as a decisive test for the future of global tokenization. One thing is certain: the race to tokenize markets has only just begun.
⚠️ Opinion and analysis — not investment advice
This article is provided for informational and analytical purposes only. It does not constitute investment advice, solicitation, or a recommendation to buy/sell digital assets. Cryptocurrencies carry high risks — only invest what you can afford to lose. Always do your own research (DYOR) before making any financial decision.
This article is not sponsored.
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