Kraken Parent Lists 200 UK/EU Stocks, DAX Included

Kraken Parent Company Expands Tokenized Stock Platform to Europe, Assets Under Management Surpass $1 Billion

Payward, the parent company of cryptocurrency exchange Kraken, has expanded its tokenized stock platform, xStocks, to include over 200 UK and European equities. The move brings all 40 constituents of Germany’s DAX index onto the platform, pushing its total assets under management past $1.1 billion. This expansion marks a significant step for tokenized stocks, extending their reach beyond U.S. markets into European blue-chip companies, though investors in the UK itself are currently excluded from purchasing these tokens.

European Expansion and Asset Growth

This week, Payward integrated more than 200 UK and European stocks onto xStocks. The platform now features all 40 components of the German DAX index, including software giant SAP, industrial conglomerate Siemens, and insurance leader Allianz. This is the first time xStocks has broadened its offerings beyond a U.S. stock focus, extending the reach of tokenized equities into the European blue-chip market.

According to a list published by Payward, each token corresponds to a physical share held by a regulated custodian. Trading execution and custody are managed by investment firm GTN. Investors can place orders through Kraken or partner platforms, receiving the tokens directly into their cryptocurrency wallets without needing to open separate European brokerage accounts or wait for European market hours.

Payward stated that xStocks currently holds over $1.1 billion in assets. With the addition of these UK and European stocks, the platform’s listed offerings have now surpassed 200, bringing German blue-chip stocks onto the blockchain alongside major companies from the UK and other key European markets.

Regulatory Hurdles and Investor Exclusions

Intriguingly, despite the inclusion of UK stocks, investors based in the UK and the United States are currently barred from purchasing them. Regulatory bodies in both jurisdictions have yet to relax their stances on “tokenized securities.” Consequently, Payward is only opening access to investors in other qualified jurisdictions, creating a peculiar situation where UK stocks are available but not to UK residents.

Future Ambitions: London and Asia

The next phase of expansion is slated for London. In September, Payward reached an agreement with the London Stock Exchange (LSE) to tokenize the top 100 companies listed on the exchange. Trading is expected to launch on the LSE’s 24 platform in 2027, pending regulatory approval. If successful, this would elevate tokenized stocks from being “certificates issued within the crypto sphere” to an official product line of a major stock exchange.

Asia has not been overlooked. Payward announced plans to add hundreds more Hong Kong-listed stocks within the coming weeks, effectively replicating the same mechanism for blue-chip stocks in the Asian time zone. For investors accustomed to switching between U.S. and Hong Kong markets, this represents an experiment in compressing settlement and clearing onto the blockchain.

Understanding Tokenized Stock Ownership

It is important to note that acquiring a token does not equate to owning the underlying stock. xStocks issues certificates collateralized by physical shares, offering synthetic exposure to stock prices. Holders do not gain direct ownership in the underlying companies. Since August, eligible token holders within the voting list can submit their voting intentions for shareholder meetings through Broadridge’s channels. Dividends are not paid in cash but are converted into additional tokens and reinvested.

Navigating Regulatory Boundaries

This design operates at the edge of new U.S. regulations. The U.S. Securities and Exchange Commission (SEC) has issued an innovation exemption for tokenized securities trading venues, requiring tokens to grant holders the same rights as traditional shares of the same class. The exemption’s explanatory document explicitly excludes tokens issued by third parties that offer only synthetic exposure. In contrast, OKXICE, a joint venture between OKX and Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, is pursuing a different path by directly connecting issuers with shareholder rights. xStocks’ certificate model, therefore, establishes an alternative custody and voting framework outside of this structure.

A Race for Infrastructure

Looking at the broader timeline, xStocks’ move signifies a shift in the tokenized stock landscape from a competition of single-market products to a race for cross-time zone infrastructure. Payward established a foothold with U.S. stocks, then expanded its product line to European blue chips with 200 listings, and is now preparing for Hong Kong. Crucially, these steps do not require U.S. regulatory approval because the platform is selling custody certificates, not the stocks themselves. This explains why UK residents are barred from buying UK stocks: the product design deliberately circumvents the regulations that would trigger local securities laws.

The Price of Rights and Future Outlook

The trade-off is a difference in rights. Token holders have price exposure and a channel to submit voting intentions but lack shareholder status, and dividends are reinvested as tokens. As venues like OKXICE, which follow the issuer route, begin trading, the same stock will exist in two forms: tokens with shareholder rights and certificates offering only price exposure. The concentration of liquidity will be a key indicator to watch. The second point of observation is London: if LSE 24 receives approval as scheduled in 2027, it would lend exchange endorsement to the certificate model. If the timeline slips further, xStocks’ growth will depend on its existing crypto user base, making it challenging to scale beyond its current $1.1 billion in assets.