Apple, Tesla on Solana: Can Tokenized Stocks Entice Crypto Traders?

As crypto exchanges increasingly court conventional financing, can tokenized stocks flourish where past attempts have failed?The post Apple, Tesla on Solana: Can Tokenized Stocks Lure Crypto Traders? appeared first on Cryptonews.

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A growing number of crypto-native platforms are courting traditional finance, with $23.3 billion of real-world possessions issued on-chain. Exchanges such as Kraken and Binance have embraced tokenized variations of popular U.S. stocks like Apple and Tesla.Some analysts say tokenized stocks have strong potential in crypto, while others think they’ll only prosper if they focus on high-risk, fast-moving equities.Kraken is releasing xStocks– tokenized versions of popular U.S. stocks like Apple, Nvidia, and Tesla– mixing crypto with conventional finance in the ever-expanding sphere of real-world assets (RWA) concerning the blockchain.Now, as crypto exchanges increasingly court standard financing, can tokenized stocks prosper where past attempts have stopped working? Can they attract “degen” traders known for their appetite for high-risk, high-volatility investments?”Tokenized stocks have strong potential in crypto due to their ability to offer fractional ownership, 24/7 trading, and improved liquidity on blockchain platforms,” Ryan Lee, chief analyst at Bitget, informed Cryptonews. Tokenized securities are digital versions of regular shares, which can be traded on the blockchain. In Kraken’s case, the over 50 tokens and exchange-traded funds (ETFs) available are issued on the Solana blockchain.Each xStock token shows the cost of its real-world counterpart, backed by real shares held in custody by Backed Financing, Kraken’s partner for the endeavor. For instance, one token for Apple (xAAPL) would track the Nasdaq rate of the AAPL stock and can be redeemed 1:1 for cash.Today we’re announcing our new collaboration with @BackedFi for the launch of xStocks on @Solana @xStocksFi will provide tokenized versions of U.S.-listed equities, available soon to qualified Kraken customers in choose non-U.S. markets.A brand-new layer of market gain access to, constructed on … pic.twitter.com/eXUnpHDipF— Kraken Exchange (@krakenfx) May 22, 2025Investors do not need to hold the shares straight, just tokens that represent ownership of the securities. Kraken says its tokens will not be readily available to U.S. consumers and will be offered in choose markets outside America.The U.S.-based crypto exchange is not the first platform to provide tokenized stocks. Bybit recently announced the launch of its own tokenized shares. Binance, the world’s largest cryptocurrency exchange, attempted it in 2021 however quickly dumped the project under pressure from Hong Kong regulators.Is there an Appetite for Tokenized Stocks in Crypto?Tokenized stocks have yet to acquire widespread adoption in cryptocurrency, however proponents state the products have the possible to alter the way individuals buy financial markets in a big method. As Lee, the Bitget analyst, notes:”There is growing market cravings for such items [tokenized shares], driven by retail investors looking for available and flexible exposure to traditional equities.”Sam MacPherson is the CEO and co-founder of Phoenix Labs, the business behind the DeFi lending protocol Glow. He states tokenized equities “turn static, closed-market instruments into composable foundation for the on-chain economy.””This [Kraken’s relocation] unlocks 24/7 international access, real-time settlement, and totally brand-new financial use cases,” MacPherson informed Cryptonews, including:”The financial usage cases might consist of whatever from collateralized lending to automated portfolio techniques. It’s a big step toward a unified monetary system where TradFi [traditional finance] and DeFi [decentralized financing] markets operate flawlessly together.”However not everybody shares the same interest, a minimum of not at the beginning. Georgii Verbitskii, founder of DeFi crypto service Tymio, bewares about the sort of assets that will resonate with crypto traders.In an interview with Cryptonews, Verbitskii said tokenized stocks might succeed if listings are tailored to the preferences of cryptocurrency investors, concentrating on what he described as “momentum-driven or non-correlated properties.””While the principle is promising, actual demand will depend heavily on which assets are listed,” Verbitskii stated. “On crypto-native platforms, there is likely to be more interest in high-volatility, hype-driven equities,” he observed, adding:”Names like GameStop or other meme stocks, instead of standard blue chips like Nvidia or Microsoft, which tend to be less unstable and thus less appealing to the common crypto trader [will gain interest]”In recent years, retail crypto financiers have actually tended to favor possessions with meme-driven stories or speculative upside. Meme stock influencer Keith Gill, a.k.a “Roaring Cat” on X and YouTube and “DeepF *** ingValue” on Reddit’s popular WallStreetBets, rose to popularity after putting bullish bets on GameStop. The bets sparked a trading frenzy among retail investors, including those in crypto. Eventually in January 2021, shares of GameStop skyrocketed 1,600% following Gill’s social media posts, squashing hedge funds that had shorted the Texas-based videogame merchant. The mania, which likewise reached other meme stocks like AMC Entertainment, frequently overflowed into the crypto market as traders introduced new meme coins motivated by GameStop, AMC, and others.Tokenized Stocks Target $250B Market Amid Regulative ChallengesVerbitskii thinks tokenized commodities such as silver or gold will likely “produce more powerful interest” than tokenized stocks in crypto.”These properties attract financiers seeking diversification or a hedge, and there’s currently precedent,” he stated, pointing out the crypto exchange FTX, which offered perpetual gold futures before its amazing collapse in 2022. Kraken’s relocation into tokenized securities is a renewed push to bridge crypto and TradFi however success could well hinge on whether it complies with regulative needs in the areas it will provide xStocks, according to experts.Binance’s efforts at tokenized stock offerings in 2021 failed mainly due to compliance issues, specifically the lack of a license to trade securities. Hong Kong regulators likewise queried the exchange’s custody arrangements.Analysts say in the lack of public trust, tokenized stocks end up being a regulatory time bomb. For Kraken, the collaboration with Backed Financing, a managed tokenization platform, is suggested to preempt such issues. “xStocks were developed from the ground up to address these [regulative] difficulties,” Adam Levi, co-founder of Backed told Cryptonews in response to emailed questions.”They are fully collateralized 1:1 with underlying equities and released under a MiFID II-compliant EU prospectus, complete with comprehensive financier disclosures and governed by a clear legal and regulatory structure. This brings institutional-grade rigor to a tokenized format.”Levi included that xStocks, as used by Kraken, are released in compliance with the regulatory requirements of Jersey, Switzerland, and the European Union (EU). He believes the demand for tokenized equities “will grow considerably with time.” Levi anticipates the sub-sector to follow a growth pattern similar to that of stablecoins, broadening into a $250 billion market within a couple of years. He said:”The facilities is ready, the need is building, and the shift is underway.”Democratizing Real-World AssetsThe new product from Kraken is a test of the ability of crypto firms to innovate within the guardrails of policy– something as soon as thought about sacrilegious in Bitcoin (BTC). A few business have actually already started offering tokenized equities.It includes Allo, a Dubai-based tokenized stock exchange that has tokenized $2.2 billion of real-world possessions, including 11,000 U.S. stocks and exchange-traded funds. Users can buy on-chain stocks of Bitcoin company Method, Tesla, Alphabet, and others. Allo CEO Kingsley Advani says the company has actually also tokenized more than 1,000 business preparing to go public by means of a going public (IPO), consisting of Elon Musk’s SpaceX, OpenAI, and Anthropic. “Investors benefit from faster access to these possessions with lower minimum investment limits, equalizing real-world possessions,” Advani told Cryptonews.Source: RWAHe noted that tokenization had enhanced liquidity on his platform, market access for small investors, in addition to settlement speeds. For example, fractionalization– division of stocks into smaller, tradable tokens– “lowers the capital required to invest, enabling a wider range of investors to take part,” Advani said.Transactions can now be settled in “seconds or minutes,” compared to the minimum two service days in old brokerage models. “This minimizes counterparty risk and enhances capital efficiency,” said the Allo CEO.Advani did not state precisely whether Allo had actually experienced any regulatory pushbacks, either from the U.S. or EU authorities, except to boast about a “robust compliance team” with regulatory experience in America. According to the RWA site, there are presently an overall of $23.3 billion of real-world possessions provided on-chain. That’s a growth of almost 6% over the previous 30 days, the data shows.The post Apple, Tesla on Solana: Can Tokenized Stocks Lure Crypto Traders? appeared first on Cryptonews.