xStocks on Solana: Tokenized Stocks, Kraken Integration, and the Future of Capital Markets in 2026

1. Organizational evolution and the Kraken acquisition

The genesis of xStocks lies in Backed Finance AG, a Swiss fintech company that began operations in 2021 with the vision of bridging traditional finance (TradFi) and decentralized finance (DeFi). Founded by Adam Levi, Roberto, and Yehonatan, the company focused from inception on issuing ERC-20 and SPL tokens representing a 1:1 claim on underlying assets held in regulated custody.

A defining milestone in xStocks' trajectory was the announcement in December 2025 that Kraken, one of the world's largest and oldest digital asset exchanges, had reached an agreement to acquire Backed Finance AG. This strategic acquisition aims to unify the issuance, trading, and settlement of tokenized securities under a single framework, accelerating the global expansion of xStocks and positioning these assets as fundamental building blocks within the Kraken ecosystem and the global payments network.

The move represents a significant escalation in the institutional adoption of real-world asset tokenization, signaling that major exchanges are no longer content to merely list tokenized assets — they want to control the entire vertical from issuance to settlement. The deal also validates the technical approach that Backed Finance pioneered: using public blockchain infrastructure rather than private, permissioned ledgers to deliver securities tokenization at global scale.

For the broader market, the Kraken-Backed merger establishes a precedent. If the world's sixth-largest crypto exchange is willing to acquire a Swiss securities tokenization firm, it signals to other exchanges and traditional financial institutions that the war for tokenized equity infrastructure is now a strategic priority, not a speculative side project.

2. Investment profile and capital backing

Prior to its acquisition by Kraken, Backed Finance consolidated a robust capital base through multiple funding rounds that attracted both traditional venture capitalists and blockchain-native entities. The participation of investors such as Gnosis and Exor Seeds — the latter linked to the Agnelli family, owners of Ferrari and Stellantis — underscores the project's credibility at the intersection of industrial and digital finance.

The Kraken acquisition does not merely provide additional capital — it integrates xStocks into an infrastructure that already holds banking licenses, including Kraken Financial in the United States, which recently obtained a Federal Reserve master account enabling direct dollar settlement through Fedwire. This institutional integration gives xStocks an unprecedented competitive advantage by connecting blockchain liquidity directly with global banking rails.

3. Technical architecture on Solana: Token Extensions

The decision to launch xStocks primarily on Solana responds to the need for infrastructure capable of supporting internet-scale operations with low latency and minimal transaction costs. However, the true technical innovation lies in the use of Solana's Token Extensions (formerly known as Token-2022), which allow compliance functions and corporate actions to be embedded directly at the program level of the asset.

Critical extensions for securities operations

Unlike standard tokens, xStocks utilize specific extensions that enable issuers to comply with securities regulations without sacrificing the decentralized nature of user custody. These extensions act as programmable rules that accompany the asset through every transfer. Understanding how these mechanisms work requires a solid grasp of how crypto wallets interact with on-chain tokens.

The Scaled UI Amount Config extension is perhaps the most revolutionary for the tokenized securities sector. Traditionally, a stock split or dividend payment on a blockchain would require a massive token distribution to thousands of wallets — an expensive and logistically complex operation. Through this extension, Backed Finance can simply update a multiplier in the token's smart contract. For example, if an Apple (AAPL) share undergoes a 2-for-1 split, the issuer changes the multiplier from 1.0 to 2.0, and the visible balance in all user wallets doubles instantly in a "cosmetic" manner, with no new tokens needed.

4. Oracle integration and atomic settlement

To maintain price parity with traditional markets, xStocks uses the Chainlink oracle network, which provides real-time data on execution prices and corporate actions of the underlying companies. Solana's infrastructure enables atomic settlement, meaning the transfer of the tokenized stock and payment occur simultaneously in a single transaction.

This eliminates the counterparty risk inherent in the T+2 settlement cycles (two business days) of traditional markets, where the buyer and seller must wait for clearinghouses to validate the transaction. In atomic settlement, delivery versus payment is guaranteed by the protocol itself — if either leg of the trade fails, the entire transaction reverts, ensuring neither party is left exposed.

For investors accustomed to the traditional brokerage model, this represents a paradigm shift. There is no settlement window, no fail risk, and no need for central counterparties. The blockchain becomes the clearinghouse, the registrar, and the settlement engine all at once.

The oracle infrastructure also plays a vital role in handling corporate actions. When a company announces a dividend, the Chainlink feed relays this event on-chain, triggering the Scaled UI Amount Config extension to adjust token balances accordingly. This automated pipeline eliminates the manual reconciliation that traditional custodians must perform — a process that often takes days and involves multiple intermediaries, each adding cost and latency to the system.

5. Asset catalog: Nasdaq, S&P 500, and beyond

The fundamental value proposition of xStocks is to offer international investors (non-U.S.) exposure to Wall Street's most iconic companies through tokenized assets that trade 24/5 on Kraken and 24/7 natively on the blockchain.

Available equities and ETFs

Since its official launch on June 30, 2025, xStocks has expanded its offering to over 60 individual assets and exchange-traded funds. These assets are backed 1:1 by real shares held by regulated custodians in Switzerland and the United States.

The offering also includes less conventional but high-interest assets for the DeFi community, such as CRCLx (representing exposure to Circle Internet Group) and HOODx (Robinhood Markets). It is important to note that while xStocks track share prices, they do not confer voting rights or other direct shareholder privileges. Legally, they are structured as bearer debt instruments issued by a special purpose vehicle (SPV) in Jersey.

6. Trading dynamics and fractional ownership

One of xStocks' key competitive advantages is the elimination of prohibitive minimum investment requirements. Users can acquire fractions of a share starting from as little as $1 USD. This feature is made possible by the divisibility of SPL tokens on Solana, allowing retail investors to build diversified portfolios of U.S. equities that would otherwise be inaccessible due to the price of a single whole share.

The liquidity of these assets is enhanced by their integration into decentralized exchange (DEX) aggregators such as Jupiter and Raydium, enabling users to swap their tokenized stocks for stablecoins like USDC or for SOL instantly and with minimal slippage. This on-chain composability means that an investor can buy a fraction of NVIDIA, use it as collateral, earn yield, and sell it — all without ever leaving the Solana ecosystem.

The 24/7 nature of on-chain trading also has significant implications for price discovery. While traditional U.S. markets close at 4:00 PM EST, tokenized versions continue trading globally, providing a continuous pricing signal that can react to after-hours news, earnings reports, and macroeconomic events in real time.

7. The xPoints rewards program and airdrop speculation

In March 2026, xStocks officially launched its incentive program called xPoints, a strategic initiative designed to reward active participation in the tokenized stocks ecosystem. In the cryptocurrency market, point-based systems are often precursors to the issuance of a native governance token, which has generated significant expectations of a future massive "airdrop" for early users.

Point accumulation mechanics

The xPoints program is structured to incentivize liquidity and utility of xStocks assets across three main user categories:

• Traders: Users who actively buy and sell xStocks on Kraken, Bybit, or other trading venues accumulate points based on their transaction volume.
• Liquidity Providers (LPs): Depositing xStocks assets in liquidity pools within DeFi protocols (such as the QQQx-USDC pair) generates continuous rewards.
• Builders and DeFi Users: Using xStocks as collateral for loans in protocols like Kamino or integrating them into new financial applications also qualifies for point accumulation.

Airdrop potential and market implications

Industry analysts view xPoints as a "Trojan horse" for institutional adoption. By creating a points system that resides outside the securities framework (to avoid regulatory complications), xStocks can foster a loyal user community before a potential transition to a Decentralized Autonomous Organization (DAO) structure.

The community estimates that xStocks' market potential could be 2 to 10 times greater than competitors like Ondo Finance, given the deep integration with Kraken and trading volume that has already surpassed $25 billion. The possibility that points may convert into a governance token granting rights over protocol fees has positioned xStocks as one of the RWA projects with the highest growth potential for 2026.

8. Strategic alliance with Nasdaq: the future of capital markets

One of the most impactful developments in the recent history of financial infrastructure is the partnership between Nasdaq and Payward (Kraken's parent company) to develop the "Equities Transformation Gateway." This initiative, announced in March 2026, aims to formally connect regulated stock markets with open blockchain networks.

The Equities Transformation Gateway

The project will use xStocks infrastructure to allow tokenized shares to flow seamlessly between permissioned market environments (such as Nasdaq itself) and permissionless DeFi ecosystems. The framework is expected to be operational in the first half of 2027.

Key specifications of the Nasdaq token design:

• Issuer Control: Unlike claims tokens, the Nasdaq design will allow issuing companies to maintain control over their shares while they are on-chain.
• Registry Integration: Blockchain records will integrate directly into the official share registry of the issuing company, creating a solid legal bridge between the on-chain and off-chain worlds.
• Collateral Efficiency: The architecture will enable a single tokenized share to serve as collateral for multiple trading strategies simultaneously (spot, derivatives, financing), optimizing capital utilization through the formula U = E / C.

This development positions Nasdaq not merely as a listing venue but as an underlying infrastructure provider that redefines how shares are owned and transferred in the 21st century. Kraken/Payward's role as the primary settlement layer for these transactions consolidates its position as a critical bridge between Wall Street and Web3.

9. Legal framework and regulatory compliance

The tokenization of securities requires a sophisticated legal architecture that ensures digital assets are recognized as valid property rights across multiple jurisdictions. xStocks operates under a compliance model that combines Swiss, Liechtenstein, and Jersey law. Understanding these frameworks is essential for anyone evaluating the safety of digital asset investments.

The Swiss DLT Act and the Liechtenstein Blockchain Act

The legal framework of xStocks relies on two of the world's most advanced digital asset legislations:

• Switzerland (DLT Act): Introduced the category of "ledger-based securities," which allows the right to an asset to be transferred through the mere transaction on the digital ledger, without the need for physical documents or centralized intermediaries.
• Liechtenstein (TVTG/Blockchain Act): Established a comprehensive system for the "Token Ecosystem," defining clear roles for issuers and custodians. Under this law, tokens held in custody for third parties are considered segregated assets, meaning they are protected from the custodian's creditors in case of insolvency.

Jurisdictional restrictions and KYC

Despite their blockchain-native nature, xStocks are not "anarchic" assets. They are subject to strict compliance controls that limit their availability:

• U.S. Prohibition: xStocks are not registered under the U.S. Securities Act and are therefore not available to U.S. persons or residents.
• Availability Zones: The service targets users in Europe, Asia, and Latin America, where local regulations permit access to tokenized securities through licensed platforms like Kraken or Bybit.
• Identity Verification: All on-ramps and off-ramps require complete KYC and AML processes managed by Payward Services to ensure the ecosystem remains free of illicit activities.

10. DeFi integration and Telegram (TON) expansion

The success of xStocks is not limited to centralized exchange trading; its true utility unlocks when shares become productive assets within DeFi protocols.

The role of Kamino and lending protocols

On the Solana network, protocols like Kamino have integrated xStocks as accepted collateral types. This allows investors to maintain their exposure to companies like NVIDIA or Apple while obtaining stablecoin liquidity for other investment strategies. This "equity programmability" is something traditional brokerage systems cannot offer natively and without friction.

Expansion to Telegram and the TON network

In December 2025, xStocks took a massive step toward mass adoption by launching on the TON blockchain, integrated directly into the Telegram messaging application. Through the "Wallet" feature, approximately 100 million users gained the ability to buy, hold, and transfer shares of Tesla (TSLAx), NVIDIA (NVDAx), and the S&P 500 (SPYx) with the same ease as sending a text message.

This integration represents one of the largest real-world asset (RWA) applications to date, bringing U.S. stock investment to global markets that have historically been ignored by New York investment banks. For billions of people across emerging markets in Southeast Asia, Latin America, and Africa, the ability to buy $5 worth of Apple stock through a Telegram chat interface represents a fundamental democratization of capital markets.

The Telegram integration also demonstrates a critical lesson for the tokenization industry: distribution matters as much as technology. While many tokenization projects have focused exclusively on sophisticated institutional tooling, xStocks' decision to embed inside a messaging app used by hundreds of millions of people represents a bet that the next wave of capital market participants will onboard through consumer-facing applications rather than traditional brokerage platforms.

11. Risk management and security

Every investment in tokenized assets carries inherent risks that must be considered by both institutional and retail investors:

• Counterparty Risk: Although tokens are backed 1:1, the investor has a claim against the issuer (Backed Finance) rather than direct ownership of the share. If the issuer were to fail, the process of claiming the underlying assets could be complex and subject to the SPV's insolvency proceedings in Jersey.
• Technology Risk: Despite multiple security audits conducted by firms such as Beosin, HashEx, and Cyberscope, smart contracts always present the possibility of unknown vulnerabilities or exploits. The use of Token Extensions adds additional code surface that could harbor bugs.
• Regulatory Risk: The legal landscape for tokenized securities continues to evolve. Sudden changes in financial regulators' stance could affect the tradability or legality of tokens in certain jurisdictions. This is particularly relevant as different countries adopt varying approaches to securities tokenization.
• Crypto Market Volatility: Although the underlying asset is a stable stock, the environment in which it trades (crypto exchanges, DEXs) can experience episodes of high volatility or lack of liquidity during moments of systemic stress. A DeFi protocol failure or a major exchange outage could temporarily affect the ability to redeem or trade xStocks.
• Liquidity Risk: While major xStocks like NVDAx and AAPLx enjoy deep liquidity pools, less popular tokenized stocks may suffer from thin order books, leading to wider spreads and significant slippage for larger orders. Investors should evaluate the on-chain liquidity depth of any xStock before committing substantial capital.

Despite these risks, the multi-layered security approach adopted by xStocks — including segregated custody under Liechtenstein law, multiple independent smart contract audits, the Pausable Config extension as an emergency circuit breaker, and Kraken's institutional-grade infrastructure — represents one of the most comprehensive risk mitigation frameworks in the tokenized securities space. Investors should nonetheless conduct thorough due diligence and consider these factors within the context of their overall portfolio strategy.

12. Conclusions

The xStocks ecosystem on Solana represents the culmination of years of development in blockchain infrastructure and digital financial regulation. By uniting Solana's speed and programmability with the stability and value of Nasdaq and S&P 500 equities, xStocks has created a new asset class that breaks the traditional molds of investment.

The Kraken acquisition and the strategic alliance with Nasdaq are unequivocal signals that stock tokenization is not a passing trend but the inevitable future of capital markets. With the launch of the xPoints program and expansion to mass communication platforms like Telegram, the project is laying the foundations for a global financial system where asset ownership is instant, fractional, and — above all — accessible to anyone with a smartphone and an internet connection.

As we approach 2027, the integration of these assets into the core of Nasdaq's infrastructure will mark the beginning of an era of "Open Capital Finance" where the borders between Wall Street and Web3 disappear entirely. For investors, builders, and institutions alike, xStocks offers a front-row seat to one of the most significant structural transformations in the history of global finance.

The key metrics tell a compelling story: $12.7 million in venture funding, an acquisition by a top-5 global exchange, a Nasdaq partnership for infrastructure development, over 60 tokenized assets, $25 billion+ in cumulative trading volume, and access to 100 million Telegram users. These are not the hallmarks of an experiment — they are the foundations of a new financial operating system.

The convergence is no longer theoretical — it is being built in real time, on-chain, one tokenized share at a time.