Kraken-backed xStocks is launching tokenized US equities inside Telegram’s Wallet, offering 24/7 trading and fractional ownership for U.S. stocks and ETFs. The product is fully collateralized 1:1 by underlying shares, began rolling out in October 2025, and recorded more than $300 million in trading volume within its first four weeks, underscoring early market traction.
The initiative embeds xStocks directly into Telegram’s native Wallet using the TON blockchain to reach nearly 100 million users. The initial rollout offered 35 tokenized assets and is scheduled to expand to more than 60 by the close of 2025. Features highlighted by the integration include continuous, round‑the‑clock trading, fractionalized share exposure, and the potential to enable DeFi composability where tokenized assets can serve as collateral or be used for yield strategies.
Operationally, xStocks are structured as token representations that are 1:1 collateralized by actual shares, with underlying equity sourcing and custody provided through partnerships deepened after Kraken’s acquisition of Backed Finance AG. Complementary agreements—such as an expanded relationship with Alpaca for equity sourcing and custody and an on‑ramp arrangement with Alchemy Pay—support global access and fiat conversions.
Kraken’s broader acquisitions, including a reported purchase of NinjaTrader and Small Exchange, form part of a strategy to build regulated TradFi infrastructure alongside tokenization capabilities.
Tokenized US equities: integration with Telegram and product details
Tokenized US equities operate in a contested regulatory environment that materially shapes market strategy. Trading these tokenized securities is not presently legal in the U.S. without specific regulatory relief, prompting platforms to prioritise non‑U.S. jurisdictions while regulatory clarity evolves. U.S. enforcement bodies are applying existing securities laws and custody standards to novel digital venues, and industry participants are pursuing instruments such as no‑action letters to secure conditional assurance against enforcement.
Key risks for investors and compliance teams include smart‑contract vulnerabilities, custody counterparty risk, potential gaps in traditional shareholder rights, market and liquidity volatility associated with crypto markets, and the prospect of adverse regulatory actions that could affect legality or transferability.
Each of these risk vectors has operational consequences: smart‑contract flaws may create irreversible loss scenarios; custody failures can produce cross‑border legal complexity; and token structures that confer contractual rather than direct legal ownership can change the remedies available to holders in insolvency or corporate events.
The Telegram integration accelerates retail accessibility to tokenized equity exposure while concentrating operational and regulatory complexity in new forms. The product’s early volume suggests demand, but legal constraints in the U.S. and custody and smart‑contract risks will govern how and where the offering can scale.
