Payward, the parent company of cryptocurrency exchange Kraken, has announced plans to expand its xStocks tokenized equities platform by adding Hong Kong-listed shares through a partnership with the investment infrastructure provider GTN. This initiative marks the first time Payward’s xStocks framework will include non-US equities and may eventually feature shares listed in Britain, Europe, and South Korea, pending regulatory approval in each jurisdiction.
Expansion of Tokenized Equities
The partnership between Payward and GTN will initially allow the launch of tokenized stocks tied to companies listed on the Hong Kong Stock Exchange. Payward emphasized that all additional market launches will require approval from financial authorities before becoming available to investors.
Payward’s xStocks framework is designed to provide investors access to tokenized representations of traditional equities via blockchain technology. The platform first launched last year, offering tokenized stocks from the US as well as exchange-traded funds.
Currently, xStocks features over 500 securities and has facilitated trading volume of more than $35 billion. Nearly 200,000 holders are using the platform, but it is not available to investors in the US.
GTN, a global provider with access to over 90 financial markets, will be responsible for execution, custody, and record-keeping of the underlying securities related to the tokenized stocks. Following approval, GTN plans to offer xStocks products to its institutional clientele.
Mark Greenberg, Payward’s global head of services, described international markets as “the largest untokenized asset class.” He stated the company’s ambition to bring all global capital markets on chain incrementally.
Payward’s Mark Greenberg underscored the company’s aim to “bring all global capital markets on chain in a piecemeal manner” as part of its broader tokenization strategy.
Neither Payward nor GTN specified the exact asset types that could be added in future expansions, but both parties indicated that the collaboration establishes the infrastructure necessary for potential growth beyond stock tokens.
Tokenization Attracts Growing Interest
The market for tokenized stocks is becoming increasingly competitive as both cryptocurrency firms and traditional financial institutions seek to expand their offerings. Robinhood recently made stock tokens available to users outside Europe, while Coinbase is also preparing to introduce its own tokenized equities products.
Major US stock exchanges and post-trade service providers, including the Depository Trust & Clearing Corporation (DTCC), are moving forward with blockchain securities infrastructure tests to facilitate the tokenization of traditional securities.
Backers of tokenized equities highlight benefits such as faster settlement and round-the-clock trade execution, made possible by blockchain networks. Such innovations are also expected to enable more efficient asset transfers and reduce the reliance on traditional intermediaries.
Citi estimates that the total value of tokenized securities could reach $5.5 trillion by 2030. This projection includes an anticipated $2.6 trillion in tokenized equities.
Until now, most tokenized equity products have been linked to major US companies like Nvidia, Apple, and Tesla. The introduction of Hong Kong-listed shares is expected to give eligible investors exposure to Asian firms, including those operating in the artificial intelligence supply chain, pending regulatory clearance in each region.
| Platform/Operator | Current Tokenized Markets | Planned Expansion |
|---|---|---|
| Payward xStocks | US stocks, ETFs | Hong Kong, Britain, Europe, South Korea (pending approval) |
| Robinhood | US stocks for non-European users | Not specified |
| Coinbase | Preparing to launch | Stock tokens (no region specified) |
Regulatory Requirements and Outlook
For each additional market or new asset class introduced to xStocks, Payward and GTN must secure approval from local regulators. The underlying structure of xStocks relies on third-party issuers purchasing and holding traditional stocks, then tokenizing them on blockchain. Some industry participants have pushed for native issuance on blockchain as a way to eliminate intermediaries entirely.
The growing interest in digital securities is attracting greater scrutiny from financial regulators and market infrastructure firms. Approvals will determine when and where Payward and GTN can introduce new tokenized products or expand asset coverage.
Payward is known as the parent company of Kraken, a leading global cryptocurrency exchange established in 2011. GTN provides global investment infrastructure, enabling access to a wide range of capital markets.
Mini dictionary: GTN—This investment infrastructure firm offers order routing, execution, clearing, and settlement services to financial institutions, providing access to over 90 international stock markets.
The current collaboration between Payward and GTN comes as debate continues within the financial industry over whether tokenized stocks should be issued through third-party custodians or directly on blockchain networks without intermediaries.
