Kraken-Backed xStocks Launches Tokenized US Stocks on TON Wallet

Kraken-backed xStocks has officially launched on TON Wallet, providing Telegram users worldwide with access to tokenized US stocks. This expansion marks a significant step towards democratizing stock market participation through blockchain technology, although initial availability does not include the United States.

What We Know

xStocks, supported by the leading cryptocurrency exchange Kraken, has deployed its tokenized stock offering on the TON (The Open Network) blockchain via the TON Wallet integration. According to reports from Cointelegraph and BITRSS, the launch is rolling out across "nearly all markets," allowing Telegram's extensive user base to gain direct access to fractional ownership of US-listed equities through a self-custodial wallet infrastructure.

This service enables users to hold and trade tokenized versions of popular US stocks without the need for traditional brokerage accounts. By leveraging the TON blockchain's infrastructure, xStocks facilitates seamless transactions within the Telegram ecosystem, where users already spend significant time and manage digital assets.

Key Details

The launch on TON Wallet signifies a strategic expansion for xStocks, which previously operated in limited capacities. The integration with TON Wallet—one of the most accessible Web3 wallets for Telegram users—substantially lowers barriers to entry for retail investors interested in traditional equity markets.

Several critical aspects characterize this rollout:

Self-Custodial Access: Users retain direct control of their tokenized stock holdings through the TON Wallet, eliminating intermediaries and reducing counterparty risk. This aligns with the core principle of self-sovereignty in blockchain technology.

Geographic Reach: The rollout across "nearly all markets" suggests broad international availability, though regulatory considerations are crucial. The global presence of the Telegram platform positions xStocks to reach audiences across Europe, Asia, and other regions simultaneously.

Regulatory Restriction: Importantly, xStocks will not be available to US users at launch. This exclusion reflects the complex regulatory landscape surrounding tokenized securities in the United States, where securities laws necessitate specific licensing and compliance frameworks that differ significantly from other jurisdictions.

Fractional Ownership Model: By tokenizing US stocks, xStocks enables fractional share purchases, allowing users with limited capital to build diversified portfolios and engage in markets that traditionally require substantial initial investments.

Why This Matters

This launch signifies the growing mainstream adoption of tokenized assets and blockchain-based financial infrastructure. As cryptocurrency exchanges like Kraken integrate with traditional finance, they help legitimize digital asset classes and normalize blockchain technology for everyday investing.

The timing is particularly significant given Telegram's user base of over 900 million, many of whom are already engaged with cryptocurrency and decentralized finance. By embedding stock market access directly into familiar social platforms, xStocks reduces friction in traditional equity investing while introducing new audiences to blockchain technology.

For Kraken, this expansion diversifies its revenue streams beyond cryptocurrency trading and underscores confidence in blockchain's role within the broader financial ecosystem. For Telegram users, it represents unprecedented access to US equity markets without geographic barriers or complex account setup processes.

However, the exclusion of US users highlights the regulatory challenges that persist despite advancements in blockchain technology. The evolution of these restrictions will likely influence xStocks' long-term success and the potential for similar integrations across additional platforms.

Sources: Cointelegraph, BITRSS