Kraken Expands API Offerings with Tokenized US Stocks and ETFs via xStocks

Kraken has announced an expansion of its API Partner Program to include xStocks, a new offering that allows partner platforms to integrate tokenized representations of U.S. stocks and ETFs. This move aims to bridge the gap between traditional financial markets and the cryptocurrency space, catering to a growing demand from traders who want to manage diverse portfolios within a single interface.

The blurring lines between crypto and traditional markets have become increasingly apparent, with Bitcoin ETFs seeing significant inflows and a new generation of traders fluidly navigating both asset classes. Trading terminals and platforms that offer advanced order management, analytics, and multi-venue portfolio monitoring are now facing user expectations for access to a wider range of assets, including major equities and ETFs, alongside cryptocurrencies like Bitcoin and Ethereum.

xStocks are tokenized assets backed 1:1 by their underlying U.S. stock or ETF. Through Kraken's API, partners can offer spot trading and perpetual futures on these tokenized equities, with leverage up to 20x. This includes access to major indices, gold-backed ETFs, and individual company stocks such as Apple, Nvidia, and Tesla. The integration allows traders to manage both their crypto and tokenized equity exposures from the same account and through the same interface, eliminating the need to switch platforms or maintain separate accounts.

Kraken emphasizes that platforms that can offer a comprehensive range of assets tend to have stronger user retention. By enabling partners to incorporate xStocks, Kraken aims to help them become the primary venue for their users' trading needs, reducing the likelihood of users seeking alternative platforms for asset diversification.

The Kraken API Partner Program provides a pathway for trading terminals and platforms to incorporate xStocks without requiring the development of separate infrastructure or managing additional platform relationships. The program offers lifetime commissions that reflect the enhanced connectivity and value-added tools provided to users. As partners' users trade tokenized equities alongside crypto, this activity contributes to their commission tier within the program.

The company notes that many platforms have not yet adopted multi-asset offerings, leaving a segment of traders seeking this functionality to work around existing limitations. xStocks through Kraken's APIs are presented as a straightforward solution to close this gap. The program is currently open to trading terminals and platforms that provide advanced order management, analytics tools, and multi-venue portfolio monitoring. Geographic restrictions apply to the offering.

It is important to note that these materials are for general information purposes only and do not constitute investment advice, a recommendation, or a solicitation to buy, sell, stake, or hold any cryptoasset or to engage in any specific trading strategy. Kraken states it makes no representation or warranty regarding the accuracy, completeness, or timeliness of any information and will not be liable for any errors, omissions, or delays. Kraken also asserts it does not influence the price of any cryptoasset.

The availability of xStocks and related services may be subject to regulatory frameworks. Kraken notes that while some crypto products and markets are regulated and others are unregulated, the company may or may not be registered or authorized to provide specific products and services in each market, and users may not be protected by government compensation or regulatory schemes. The inherent volatility of cryptoasset markets can lead to fund loss, and tax may be payable on returns.

xStocks are issued by Backed Assets (JE) Limited and offered to eligible Kraken customers via Payward Digital Solutions Ltd. (“PDSL”), a company licensed by the Bermuda Monetary Authority. xStocks are not registered with local securities regulators. PDSL (Kraken) does not provide investment advice, and individual investors are advised to seek professional, independent advice regarding the suitability of any investment, including potential tax treatment. Investing in xStocks involves risk, and past performance is not indicative of future results. The offering is not available in the U.S. or to U.S. persons, and other geographic restrictions may apply. Users are advised to review Kraken’s xStocks Risk Disclosure and related legal documentation.

xStocks Perps are offered to eligible Kraken customers via PDSL and also involve a high level of risk, potentially leading to losses exceeding the initial investment. This is not investment advice, and availability is subject to geographic restrictions.

Key facts
| Feature | Detail |
|---|---|
| Offering | Tokenized U.S. stocks and ETFs (xStocks) |
| Integration | Available via Kraken's spot and futures APIs |
| Leverage | Up to 20x on perpetual futures for tokenized equities |
| Target Audience | Trading terminals and platforms with advanced order management, analytics, and portfolio monitoring |
| Provider | Backed Assets (JE) Limited (Issuer), Payward Digital Solutions Ltd. (PDSL) via Kraken |
| Restrictions | Not available in the U.S. or to U.S. persons; other geographic restrictions apply |

This development for Kraken's API Partner Program allows trading platforms to offer a more integrated trading experience, combining traditional financial instruments with cryptocurrencies. For users of these platforms, it means greater convenience and the ability to manage a diversified portfolio across asset classes without the friction of using multiple services. The move reflects a broader industry trend towards unifying access to different markets.

Source: Kraken Blog RSS - https://blog.kraken.com/product/api/kraken-api-partner-program-xstocks