Kraken-Backed xStocks Launches on TON Wallet Across Most Markets

Kraken-backed xStocks has officially launched its tokenized securities platform on TON Wallet, a self-custodial wallet integrated into the Telegram messenger. Initially rolled out in Wallet within Telegram, xStocks is now fully operational on The Open Network (TON), marking a significant milestone for Telegram users aiming to access tokenized US equities on the blockchain.

Key Takeaways

xStocks, supported by Kraken, has launched on TON Wallet, allowing access to tokenized equities.
The platform features a variety of stocks, such as Circle (CRCLX), Coinbase (COINX), Robinhood (HOODX), and TON Strategy (TONx).
Availability is limited in major markets like the US, EU, and Australia, adhering to regulatory requirements.
The rollout aims to focus on developing markets rather than established ones.
Some firms, like Securitize, maintain a more optimistic view regarding regulation in the US, offering tokenized stocks to American investors.

Kraken-backed xStocks launches on TON Wallet in ‘nearly all markets’

Overview of xStocks' Launch

The tokenized securities platform, xStocks, is now available on TON Wallet, enabling users to trade tokenized equities directly through the Telegram messenger. This launch signifies the first opportunity for Telegram users to engage with US equities on the blockchain, as highlighted by Kraken co-CEO Arjun Sethi.

Previously, Wallet in Telegram had integrated xStocks with 35 tokenized stocks, including well-known companies such as Circle, Coinbase, Robinhood, and TON Strategy.

Availability and Regulatory Limitations

While xStocks will be accessible in almost all markets where TON Wallet operates, key regions including the US, the European Union, and Australia are exceptions reported by Egor Danilov, chief product officer at The Open Platform (TOP). This limited availability is a reflection of the need to comply with regulatory frameworks and the existing setup of xStocks.

“Access will expand gradually as regulatory guidance allows,” Danilov explained, stressing that xStocks cannot be distributed to US individuals. The focus remains on adhering to regional regulations and licensing protocols.

xStocks Image Source: xStocks

Focus on Developing Markets

xStocks' limited launch strategy demonstrates a deliberate choice to prioritize developing markets for initial engagement with tokenized US equities rather than established economies. Danilov emphasized that by launching on TON, xStocks aims to democratize access to legitimate financial products for global users, making them available through widely-used digital platforms instead of solely via established financial institutions.

In contrast, other tokenization firms, like Securitize, take a more favorable stance on the US market. They believe there are viable pathways for tokenized securities and have already made their tokenized stocks available to US investors. Securitize CEO Carlos Domingo recently conveyed a positive outlook regarding regulations, highlighting a recognized pathway for issuing and tokenizing assets for American investors.

By making advancements in tokenization, firms like xStocks and Securitize are paving the way for the evolving landscape of digital assets and their place within global finance.