Kraken to List Tokenized Nvidia (NVDA), Apple and Tesla Stocks

Cryptocurrency exchange Kraken plans to list tokenized shares of Nvidia (NVDA), Apple (AAPL), Tesla (TSLA), and over 50 other U.S. stocks and exchange-traded funds (ETFs).

The tokens, which will be deployed on the Solana (SOL) blockchain, will be listed under the name “xStocks” and be available to trade 24 hours a day, seven days a week for investors worldwide. Some of the ETFs that will be available to trade include the SPDR S&P 500 ETF (SPY), which tracks the benchmark S&P 500 index, and SPDR Gold Shares (GLD) that holds bullion.

The stocks will be represented by real shares held by Backed Finance and can be redeemed 1:1 for their cash value. Tokenization is the process of turning real-world assets such as stocks into blockchain tokens. Kraken previously announced the rollout on its exchange of over 11,000 U.S.-listed stocks and ETFs in April of this year.

Right Timing

This latest announcement expands Kraken’s offering to include tokenized versions of over 50 popular stocks and ETFs to customers outside of the U.S., including in Europe and Asia. The move puts Kraken in direct competition with platforms such as Robinhood Markets (HOOD) and makes it the first exchange to successfully offer tokenized shares of major U.S. securities.

Rival crypto exchange Binance attempted to launch tokenized U.S. stocks in 2021 but canceled its plans due to regulatory issues. Privately held Kraken says now is the right time to launch tokenized versions of stocks as the regulatory environment pertaining to crypto has eased around the world.

NVDA stock has declined 3% this year.

Is NVDA Stock a Buy?

The stock of Nvidia has a consensus Strong Buy rating among 40 Wall Street analysts. That rating is based on 34 Buy, five Hold, and one Sell recommendations assigned in the last three months. The average NVDA price target of $164.51 implies 23.85% upside from current levels.

Read more analyst ratings on NVDA stock