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Stocks and xStocks

xStocks: Tesla and Nvidia on the blockchain, but you are not a shareholder

· 4 min read · By the BitFox newsroom

Abstract illustration in orange, dark blue and teal of a stock chart rising out of a chain of blocks, with a small fox looking at it with curiosity.

Research and illustration supported by AI. Checked by the BitFox newsroom.

In short

  • xStocks are tokens on Solana and Ethereum that track the price of US stocks and ETFs. They are issued by Backed, which Kraken announced it would acquire in December 2025.
  • According to the issuer each token is backed 1 to 1 by the underlying stock with a custodian. Holders have no voting rights and no legal claim on the share itself.
  • On 18 August 2026 Kraken said it offers more than 700 xStocks, with more than 38 billion dollars in total trading volume since June 2025.
  • Regulators such as ESMA warn that investors do not always understand they are not buying a share. Availability depends on your country.

Buying a Tesla share from your phone, without a broker, paid for with a stablecoin. That is the promise of xStocks, and it explains why exchanges and regulators are watching closely.

I lay out what it is, how the backing works and what you do not get. I looked up the position as of October 2026, because this sector changes from month to month.

What xStocks are

xStocks are tokens that follow the value of a US stock or an ETF. They run as SPL tokens on Solana and, according to Kraken, you can also move them to an Ethereum wallet. The issuer is Backed Assets (JE) Limited, a company from Jersey.

Backed Finance, the company behind the issuance, announced on 2 December 2025 that Kraken would acquire it. The price was not disclosed. Backed now belongs to the Kraken group. The range grew quickly: 60 stocks and ETFs at the start in June 2025, 100 on 18 March 2026 and, according to Kraken, more than 700 on 18 August 2026. In March Kraken named a goal of more than 500 by the end of 2026. Total trading volume was more than 38 billion dollars since June 2025 as of August.

How the backing works

According to Kraken and Backed each token is backed 1 to 1 by the underlying stock or ETF, held with a licensed custodian. The price follows the execution price of the underlying stock.

On 360X, the trading venue backed by Deutsche Börse, institutional clients trade five xStocks: Circle, Google, Nvidia, Tesla and the S&P 500 ETF SPY. According to Ledger Insights the backing sits in a structure that is shielded from a bankruptcy of the issuer. 360X operates under the European DLT Pilot Regime.

What you do and do not get

Kraken is clear about it: holding xStocks is not the same as buying the share. You get synthetic exposure to the price. You have no voting rights and no legal claim on the underlying share.

Dividends do not arrive as cash. According to Kraken they are reinvested automatically, so your balance goes up, after withholding tax. You can buy from 1 dollar, so a fraction of a share is possible.

How it differs from a regular broker

With a regular broker you buy the share itself. It is held in your name with a custodian and you have the rights of a shareholder. With xStocks you hold a claim on the issuer of the token, and the issuer holds the share.

Kraken shows that difference itself. Since 18 August 2026 it also offers regular US shares to customers in the European Economic Area, more than 7,000 of them, through Payward Europe Digital Solutions (CY) Limited, a Cypriot investment firm with a MiFID II licence. Alongside that, more than 700 xStocks sit in the same account. The regular shares were first rolled out in limited form in Germany, the Netherlands and France. So these are two different products from the same company.

The risks

  • Counterparty. You rely on the issuer, the custodian and the platform. ESMA executive director Natasha Cazenave warned in September 2025 that many investors do not realise they are not buying a share. According to PaymentsJournal the WFE points out that with a failing platform it can be hard to determine who owns what.
  • Regulation. On 25 August 2025 the World Federation of Exchanges wrote to regulators that it was alarmed at how many brokers and crypto platforms offer so called tokenized US stocks. According to the WFE they are marketed as equal to the share when they are not.
  • Availability. xStocks are not available to residents of the US, the United Kingdom, Canada and Australia. According to TradeInformer (March 2026) they are offered in more than 110 countries. Within the EU the offer runs through Payward Europe Digital Solutions. I could not establish whether it is open to all Dutch and Belgian customers. Check that in the app.
  • Trading hours. Kraken offers trading 24 hours a day, five days a week. Weekend trading is still in development. If you move the tokens to your own wallet you can trade them onchain around the clock,, also when the US exchange is closed.
  • Costs. Kraken charges no trading fee when you buy with USDG or dollars, but it may build a spread into the price.

What I think of it

I find the name the weakest point. The word stock suggests more than you get, and that is exactly what ESMA warns about. It is a crypto product with its own risk profile.

This is explanation and news about a product, not advice to buy or sell xStocks or any other investment.

Sources

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Note: This is education and not financial advice. Investing and crypto carry risk and you can lose your deposit.

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