TL;DR
- Kraken now gives eligible EEA customers access to stock trading in more than 7,000 U.S.-listed shares.
- Stock trading operates under Kraken’s Cyprus-licensed entity, while xStocks are issued and offered through separate entities.
- Traditional shares provide equity ownership, while xStocks are tokens with different custody, legal claims and investor protections.
Eligible customers across the European Economic Area can now trade more than 7,000 U.S.-listed stocks with Kraken. On August 18, the exchange added conventional shares to its offering of crypto and tokenized equities inside its trading platform.
US stock trading is available through Kraken Pro on desktop and mobile, as well as the main Kraken app. Kraken says stock trading is commission-free, but spreads, foreign-exchange costs and other fees may apply.
Stock access is live across the EEA
The service operates through Payward Europe Digital Solutions (CY) Limited, authorized under the European Union’s MiFID II framework. Cyprus’s securities regulator lists the company as an authorized investment firm with licence number 342/17. MiFID II sets conduct and investor-protection requirements for firms providing investment services in the bloc.
Kraken already offered crypto assets and xStocks to eligible customers in parts of Europe. Conventional equities extend that platform beyond its original role as a crypto exchange. Users can now hold more types of investments in one account, instead of moving funds between a crypto venue and a separate broker. The service is not available to every resident or every account automatically. Kraken limits access to eligible customers, and geographic restrictions and additional terms still apply.
How traditional shares and xStocks differ
Kraken presents more than 7,000 conventional U.S. stocks alongside 700+ xStocks and over 600 crypto assets, priced and displayed in the same interface. But what a customer actually holds behind that price differs by product.
A traditional share represents equity ownership in a listed company, carrying shareholder rights that depend on the security, broker arrangements and local rules.
An xStock carries no such ownership. It is a token issued by Backed Assets (JE) Limited, built to track a share’s price with 1:1 backing from the underlying stock. Token buyers hold no direct voting rights or dividend entitlements, and no legal claim on the company’s residual assets in a liquidation.
Eligible users can transfer xStocks to supported self-custody wallets and use them in compatible onchain applications, capabilities a traditional share does not have. Users can also trade the tokens outside regular stock-market hours.
Self-custody and onchain use carry their own risks. Kraken’s disclosure lists technology, liquidity, issuer, counterparty and regulatory risks for xStocks, including the possibility of losing the full investment.
Regulation follows two separate routes
MiFID II is the EU framework that governs traditional brokers, requiring firms to meet set conduct and investor-protection standards. Kraken holds that authorization for the its new stock service via Payward Europe Digital Solutions, its Cyprus-licensed entity.
xStocks are tokenized stocks. Backed Assets issues the tokens in Jersey, and Payward Digital Solutions offers them to customers through a Bermuda-licensed entity. Kraken states that xStocks are not registered with local securities regulators. They are unavailable in several markets, including the United States and United Kingdom.
When comparing the products, customers should note how traditional shares and xStocks differ in custody arrangements, legal claims and available protections.
>>> Read more: Coinbase Adds 4,000 U.S. Stocks to Grow UK Trading
What European customers still need to check
Kraken plans to take its combined stock and tokenized-equity offering into more markets. It has not provided a country-by-country expansion schedule.
Before placing an order, users need to confirm which product they selected and which legal entity provides it. They should check trading hours, withdrawal options, currency-conversion costs and tax treatment.
