Summary
- Payward and GTN plan to broaden xStocks from U.S. markets to include equities from Hong Kong, the U.K., Europe, and South Korea.
- GTN will manage execution, custody, and record-keeping for the new token's underlying assets, with institutional distribution pending regulatory approval in each market.
- This initiative positions xStocks in competition with Robinhood Chain, Coinbase's upcoming tokenized offering, and Nasdaq's tokenized equities platform.
Payward, the parent entity of the Kraken cryptocurrency exchange, has partnered with global fintech firm GTN to introduce xStocks to markets outside the United States for the first time.
Currently, xStocks are limited to U.S. equities and are available for trading only to investors located outside the U.S. This initiative aims to broaden the range of offerings to include equities from various global markets.
Kraken's xStocks are blockchain-based tokens, each representing a real share in a company held in regulated custody. Expanding beyond U.S. equities marks a significant step forward for tokenized stocks in the cryptocurrency arena.
“Financial institutions are eager to enter new asset classes and markets without having to overhaul their technology,” stated Ankit Shah, GTN’s Global Head of FinTech. “Our infrastructure enables partners like Payward to launch swiftly across more than 90 markets and a diverse array of financial instruments, including the sub-accounting technology necessary for tokenized products.”
The partnership will initially focus on equities listed in Hong Kong and will subsequently expand to include stocks from the U.K., Europe, and South Korea, contingent upon receiving regulatory approvals in each region. This also paves the way for the potential tokenization of asset classes beyond just equities.
Since its launch in June 2025, xStocks began with a catalog of U.S. stocks and ETFs and has since grown to over 500 tokenized assets, processing more than $35 billion in transaction volume. Notably, xStocks are not accessible to U.S. residents.
According to the agreement, GTN will provide the necessary global regulated infrastructure for trade execution and custody, while Payward will utilize its xStocks framework to tokenize international equities and integrate them into blockchain networks.
Mark Greenberg, global head of Payward Services, emphasized the problem this partnership aims to address. Tokenized assets allow users to trade freely without the constraints of localization.
“For years, we’ve accepted that capital markets should be divided by country, currency, and market hours. This is a legacy issue with financial infrastructure,” Greenberg remarked.
The partnership is currently operational at the infrastructure level, with distribution to GTN's institutional clients set to follow once the necessary licenses are secured in each market.
Several major players are pursuing similar initiatives. Robinhood launched its tokenized equities product via its blockchain on July 1, while Coinbase is preparing a 1:1-backed offering through its Base network.
In March, Payward and Nasdaq revealed plans for a tokenized equities gateway aimed at early 2027. Previously, xStocks expanded to Telegram's TON Wallet, testing whether mass-market distribution could drive scale.
What distinguishes the GTN partnership is its broader scope. While Robinhood and Coinbase focus on U.S. stocks, Payward is targeting a wider array of markets, starting with Hong Kong and continuing to explore GTN's over 90 markets.