Fundrise Partners with Kraken to Tokenize VCX Shares on xStocks

Summary:
Fundrise is collaborating with Kraken to tokenize shares of its Innovation Fund VCX, making it easier for individual investors to access private technology investments through a blockchain-based platform.

Key Takeaways:

Fundrise’s VCX fund is being tokenized on Kraken’s xStocks platform.
The token, named VCXx, will provide exposure to late-stage private technology firms.
VCXx will allow investors to buy shares using USDG or U.S. dollars, offering new access to private-market opportunities.
The move aims to bridge public and private markets, enhancing flexibility in trading and DeFi integration.

“Fundrise VCXx tokenized on Kraken xStocks for late-stage tech exposure.

Fundrise's Partnership with Kraken

Technology investment platform Fundrise is joining forces with the crypto exchange Kraken to tokenize shares of its Fundrise Innovation Fund VCX. According to Crowdfund Insider, this initiative will transform the publicly traded VCX, listed on the NYSE, into a blockchain-based asset on Kraken's tokenized equities platform, known as xStocks, with the ticker symbol VCXx.

What is Kraken's xStocks?

Kraken's xStocks, which operates on Payward technology, already supports over 100 fully backed tokenized U.S. stocks and ETFs. The introduction of VCXx signifies its inaugural entry into the tokenization of a diversified private technology portfolio. Fundrise’s CEO, Ben Miller, explained, “We built VCX to act as a bridge between the public and private markets.” He emphasized that tokenizing the fund on xStocks allows “individual investors to own a piece of the best private technology companies in the world” within a regulated framework.

Details on VCXx Tokenization

The VCXx token will be issued by Backed Assets (JE) Limited and made available through Payward Digital Solutions, with trading anticipated to begin on xStocks "in the coming days.” Both Fundrise and Kraken assure that VCXx will be fully backed by the underlying VCX shares, designed for smooth transitions between centralized exchanges, self-custodied wallets, and on-chain applications.

Investment Options for VCXx

According to xStocks’ launch documents, investors will be able to purchase VCXx using USDG, Kraken’s internal dollar-based token, or traditional U.S. dollars, providing eligible investors outside the U.S. with the opportunity to gain exposure to VCX’s portfolio. This portfolio is comprised of stakes in notable late-stage private firms such as SpaceX, OpenAI, Anthropic, and Databricks, consolidating them into a single liquid, tokenized asset that can also serve as collateral or integrate into automated trading strategies.

Expanding Access to Private Tech Investments

Fundrise’s Innovation Fund aims to democratize access to late-stage private tech investments that are usually reserved for institutional or ultra-high-net-worth investors. By bringing VCX on-chain, xStocks and Fundrise are expanding tokenized equities beyond just public stocks, tapping into previously inaccessible areas of the private market. Kraken labels this segment as “one of the most sought-after and historically inaccessible parts of the market.”

The Future of Tokenized Investments

The partnership underscores the belief that tokenizing VCX shares permits broader access to diversified private tech investments. This new approach allows these assets to be exchanged, transferred, and incorporated into decentralized finance (DeFi) with similar flexibility as other digital assets. Should VCXx achieve liquidity, it may set a precedent for how other publicly listed vehicles and funds can wrap private holdings into programmable, tradeable tokens while adhering to existing regulatory frameworks.