According to a report by The Block, Payward, the parent company of cryptocurrency exchange Kraken, is set to launch its xStocks framework. The service will enable users of Kraken and partner platforms to participate in U.S. stock initial public offerings (IPOs) at the issue price, receiving on-chain tokenized shares pegged 1:1 to the underlying equities. The underlying stocks are held by a regulated custodian, ensuring asset security.
Weeks before an IPO, users can submit non-binding indications of interest through partner platforms. Payward aggregates the demand, collaborates with the underwriting syndicate to allocate shares, and finalizes pricing, allocation, and token minting on the listing day. The process leverages blockchain technology for transparency and efficiency.
Notably, xStocks tokens are designed for cross-chain interoperability, supporting Ethereum, Solana, TON, and other public chains, and can be combined with DeFi protocols, providing investors with flexible financial operations. This move further bridges traditional financial markets and the crypto ecosystem.