Payward expands its xStocks platform to include equities from Hong Kong, the UK, and South Korea, enhancing competition in tokenized stocks.
Payward's expansion into international markets highlights a growing trend in tokenization.
Payward, the parent company of the cryptocurrency exchange Kraken, is broadening its xStocks initiative by offering access to equities from Hong Kong, the UK, South Korea, and other global markets. This move marks a significant shift beyond the U.S. equities previously available on the platform.
The partnership with GTN, an investment infrastructure provider, enables the inclusion of Hong Kong-listed stocks, with plans to further expand into European and South Korean equities, contingent on regulatory approvals. This collaboration is also expected to enhance xStocks by adding a diverse range of tokenized asset classes.
Mark Greenberg, global head of Payward Services, emphasized the potential of tokenization to bridge global capital markets, stating, "The biggest asset class that hasn't been tokenized yet is the rest of the world. One asset at a time, we're bringing truly global capital markets onchain until geography becomes irrelevant to investing."
Increased Competition in Tokenized Equities
This initiative comes amid rising competition within the tokenized equity sector, where traditional finance firms and other crypto companies are striving to innovate stock trading on blockchain. Notably, Robinhood has recently expanded its tokenized stock offerings outside Europe, and Coinbase is preparing to launch stock tokens as well.
Analysts project that the market for tokenized securities could see significant growth, potentially reaching $5.5 trillion by 2030. This anticipated expansion highlights the growing acceptance of tokenization as a method to improve capital market efficiency through features like faster settlements and continuous trading access.
Currently, xStocks hosts over 500 tokenized securities and has processed more than $35 billion in trading volume. However, these offerings are not yet available to U.S. investors. The GTN partnership will manage execution, custody, and recordkeeping for the securities backing these tokens, paving the way for future institutional offerings if regulatory approvals are secured.
As discussions around the issuance of tokenized stocks gain traction, the xStocks model relies on third-party issuers who acquire traditional shares to create tokens. This approach has raised questions among stakeholders about the potential for a more direct issuance on blockchain networks, which could streamline the process and eliminate intermediaries.
