How tokenized stocks work on crypto exchanges

Kraken describes xStocks as tokenized representations of real US stocks and ETFs, each backed 1:1 by the underlying equity held in regulated custody and issued as a token on Solana, Ethereum, TON and Ink. They are issued by Backed Assets (JE) Limited, not by Kraken. (Kraken xStocks FAQ)

Backing is not the same as ownership. Kraken’s risk disclosure says holders of xStocks do not own the underlying shares and have no voting rights, distribution entitlements or legal claim to the shares, and that returns will not be identical to holding the stock directly. (Kraken xStocks risk disclosure)

Backpack offers two forms of the same security. Shares held in a Backpack Securities account are security entitlements under New York law (UCC Article 8). Tokenized securities issued by Backpack are a claim on a special purpose vehicle that holds the underlying assets, kept in your own Solana wallet, and Backpack says each token can be redeemed 1:1 into the underlying security entitlement through Backpack Securities. (Backpack tokenized securities)

Tokens usually do not pay cash dividends. Kraken reinvests the net dividend, after withholding tax of 30% for US-listed xStocks, into more of the underlying asset and raises a multiplier, so your xStock balance grows while the number of onchain tokens stays the same. Stock splits are handled the same way. (Kraken xStocks FAQ)

Backpack’s tokenized securities also reinvest dividends into additional tokens and reflect corporate actions through balance adjustments. Cash dividends are paid only on the brokerage form held in a Backpack Securities account. (Backpack tokenized securities)

Kraken lists 10 US-listed xStocks that trade 24/7 on Kraken Pro, including TSLAx, SPYx, NVDAx and AAPLx; the other US-listed xStocks trade 24/5, and UK- and EU-listed xStocks follow their home exchange’s hours. Once withdrawn to a self-custody wallet, xStocks can trade around the clock onchain.

Kraken says prices are anchored to the official exchange price during market hours, and that outside them market makers estimate fair value from other data, with wider spreads. When markets reopen, gaps are corrected by arbitrage. (Kraken xStocks FAQ)

On Kraken there is no trading fee when you buy xStocks with USDG or USD; the standard Instant Buy fee applies when you pay with other assets, and a spread may be included in the price. On the Kraken Pro spot order book, Kraken lists a 2 basis point rebate for makers and a 10 basis point fee for takers, and a fixed 1% fee for converting xStocks. (Kraken xStocks FAQ)

Fees change often, so check the platform’s fee page on the day you trade. For how maker and taker rates work in general, see how crypto exchange fee tiers work.

Availability is limited by region. Kraken says xStocks are available to eligible non-US clients in more than 110 countries and are not accessible in the US (or to US persons), Canada, the UK or Australia. EEA clients must first pass a questionnaire and can then buy, sell and convert xStocks with fiat on kraken.com only, not on the Kraken Pro order books. (Kraken xStocks availability)

Backpack says Backpack Securities is not offered in the US, the UK, the UAE or Japan, and not on Backpack EU. Shares can be transferred in from supported brokers, but transfers from Backpack to another broker are not currently supported, and voting is not yet active. (Backpack ownership and legal framework)

Both structures allow self-custody. Kraken lets you withdraw xStocks to a compatible wallet on Solana, Ethereum, TON or Ink, but not to a traditional brokerage account. Backpack keeps an official directory of its token addresses and asks users to check a token address against it before interacting with a token onchain, a useful habit for any tokenized asset. For more on wallets, see custodial and self-custody wallets.

• Kraken: xStocks FAQ Checked 12 November 2026
• Kraken: xStocks availability Checked 12 November 2026
• Kraken: xStocks risk disclosure Checked 12 November 2026
• Backpack: Tokenized securities Checked 12 November 2026
• Backpack: Real ownership and legal framework Checked 12 November 2026