The platform for tokenized stocks called xStocks, owned by Kraken (a cryptocurrency exchange), is now expanding to a new blockchain network called The Open Network (TON) (TON). This means it will bring tokenized U.S. stocks to the TON blockchain, which will be linked with Telegram’s special Wallet app. Telegram (a messaging platform) users will soon be able to access U.S. stocks right in the app along with many cryptocurrencies.
What is Happening with xStocks and TON Blockchain?
Once launched, people can use xStocks to buy, keep, and send tokenized versions of popular stocks like Tesla (electric car maker, Tesla) and Nvidia (technology company, Nvidia). Essentially, these are digital versions (called tokens) of these stocks. They can also access other investment options like ETFs (exchange-traded funds, which are investment collections of assets like stocks).
Telegram, a chat app, started offering stocks and ETFs in October. Even though this feature was only available in some countries, it became popular. Now, with xStocks joining, the service is expected to grow even more within Telegram Wallet. Telegram Wallet is a tool for managing your digital money directly in Telegram.
Max Crown, the President of TON Foundation, said this makes using real financial assets (like stocks) on TON faster and simpler. It also brings financial tools to everyday people and pushes TON further as a major blockchain for handling important real-world financial assets. Now, anyone can easily use U.S. stocks on a blockchain along with their cryptocurrencies.
How xStocks is Growing?
Kraken launched xStocks earlier in June by working with a company called Backed Finance. Since then, xStocks has been expanding rapidly. It’s already available on other blockchain platforms like Ethereum (a popular blockchain platform) and Solana (a fast blockchain for smart contracts). TON will now be the third blockchain where xStocks operates. The goal is to connect multiple blockchains so users from around the world can use the platform more easily.
More than $180 million worth of stock tokens are already being traded on xStocks. Around 50,000 people already use their wallets with xStocks. With its debut on TON, the platform might grow even larger in terms of users and transactions.
Kraken’s co-CEO, Arjun Sethi, explained the benefits of this technology, saying that millions of Telegram users can now trade U.S. stocks in the same way they send messages – instantly and without complications. Tokenization (a way to turn real assets into digital ones) makes financial assets something everyone can use and exchange globally without middlemen. This opens the doors to entirely new ways of using financial assets around the world.
What’s Next for Kraken and xStocks?
Kraken is also working on acquiring Backed Finance, the company helping with tokenized stock trades. Kraken wants to combine the creation, trading, and settling of tokenized stocks under one system. This is part of their bigger plan to grow and offer seamless services.