Key facts
- Payward is launching xStocks to provide tokenized access to US IPO shares.
- Eligible Kraken users can express interest in IPO shares before public listing.
- The xStocks framework aims to reduce IPO access gaps for retail investors.
- Tokenized shares will be 1:1 backed by actual listed stocks held in regulated custody.
- The xStocks framework has handled over $30 billion in total transaction volume.
Payward, the parent company of cryptocurrency exchange Kraken, is introducing xStocks, a new framework designed to offer eligible retail users access to US Initial Public Offerings (IPOs) before they become available on public markets. This initiative seeks to democratize IPO access, which has traditionally favored institutional investors and private banking clients, by allowing selected Kraken customers to express interest and submit non-binding offers within the IPO price range.
The xStocks model involves collecting demand across partner platforms and working with an underwriting syndicate. Upon a company's listing day, Payward will finalize allocations, tokenize the underlying shares, and ensure each token is backed 1:1 by the actual listed stock. These shares will be held by a regulated custodian before being distributed to eligible users. The framework supports multiple blockchains, including Ethereum, Solana, and TON, and allows tokens to move across supported platforms.
Built upon the framework acquired from Backed Finance, xStocks has already processed over $30 billion in total transaction volume and settled more than $6 billion on-chain. The ecosystem currently boasts over 125,000 unique holders. Payward plans to roll out the first tokenized IPO offerings to Kraken and selected alliance customers in the coming weeks, with intentions to expand to more markets and partners in the future.