Kraken parent company Payward announced Wednesday a partnership with fintech infrastructure provider GTN to expand its xStocks tokenization offering globally beyond U.S. equities. The collaboration aims to tokenize equities from Hong Kong initially, then expand to the UK, Europe, South Korea, and other international markets. The partnership addresses what Global Head of Payward Services Mark Greenberg described as a legacy financial infrastructure problem: capital markets fragmented by country, currency, and market hours. xStocks currently tokenizes stocks and ETFs while holding underlying securities to maintain 1:1 token-to-stock backing, operating as one of the largest tokenized equity providers with over 500 U.S. assets and 200,000+ holders.
GTN Provides Infrastructure Across 90+ Markets
Under the partnership, GTN will supply the underlying execution, custody, and record-keeping infrastructure across over 90 markets, enabling xStocks to scale globally subject to regulatory approvals. GTN is working to acquire the required licenses in each market. Once licensed, tokenized xStocks will be made available to GTN's institutional clients.
The offering includes onchain infrastructure to make tokenized assets portable across over 100 exchanges, wallets, and DeFi applications. The collaboration will also open the door to tokenizing additional asset classes over time beyond equities.
xStocks Holds $515 Million in Tokenized Equities
Payward acquired xStocks in December. The platform has grown to become one of the largest tokenized equity providers, with approximately $515 million worth of tokenized assets, making it the second-largest provider in the market. According to RWA.xyz, there is approximately $1.94 billion worth of tokenized equities in existence, with Ondo holding the largest share at $887 million tokenized.
xStocks has brought over 500 tokenized U.S. assets to market and claims to have over 200,000 holders. The platform maintains 1:1 token-to-stock backing by holding the underlying securities.
Other providers in the tokenized equity space include Superstate and Securitize, which are attempting to issue actual securities onchain rather than tokens backed by real stocks. Securitize recently issued its stock onchain during its initial public offering.
FAQ
What did Payward announce on Wednesday regarding xStocks?
Payward announced a partnership with GTN to expand its xStocks tokenization offering globally, starting with Hong Kong equities and expanding to the UK, Europe, South Korea, and other international markets.
How much has xStocks tokenized compared to other providers?
xStocks has tokenized approximately $515 million worth of assets, making it the second-largest tokenized equity provider after Ondo, which has $887 million tokenized. The total tokenized equities market stands at approximately $1.94 billion according to RWA.xyz.
What infrastructure will GTN provide for the xStocks expansion?
GTN will supply the underlying execution, custody, and record-keeping infrastructure across over 90 markets, enabling xStocks to scale globally subject to regulatory approvals in each market.
