Kraken xStocks Tokenizes Hong Kong Stocks After $35B Run

Payward, the parent company behind crypto exchange Kraken and the developer of the xStocks tokenized equities framework, has signed a strategic partnership with global fintech provider GTN to bring international stocks onchain. The first phase of the initiative will tokenize shares listed on the Hong Kong Stock Exchange, with plans to extend into equities from the United Kingdom, Europe, and South Korea.

The collaboration marks a major expansion for tokenized real-world assets, which have so far been largely concentrated on U.S. equities and exchange-traded funds. GTN will use its brokerage infrastructure, spanning more than 90 markets, to handle trade execution, custody, and ledgering for the underlying international equities. Payward says the arrangement will create a multi-jurisdictional network for tokenized securities, supported by GTN's licensing footprint in Singapore, Dubai, London, and Hong Kong.

Expanding beyond U.S. equities

The decision to launch with Hong Kong stocks reflects strong demand from global investors for round-the-clock access to Asian capital markets, particularly Chinese technology companies and regional blue-chip names. The xStocks framework has already processed over $35 billion in transaction volume across more than 500 tokenized assets, indicating that crypto-native participants are actively seeking exposure to traditional equities.

Technically, xStocks tokens function as tracker certificates backed by physical assets held in secure custody. GTN's API-driven clearing architecture supplies the sub-accounting needed to ensure each onchain token maintains full-reserve backing with the corresponding shares. That structure allows users across decentralized finance platforms and centralized venues to hold, transfer, and use international equities as collateral with the speed of standard crypto assets.

The partnership also highlights a shift in how tokenized securities are being brought to market. Rather than working around legacy financial rules, Payward is embedding institutional-grade execution and compliance directly into the issuance process. Once local regulatory approvals are obtained, GTN plans to distribute xStocks directly to its institutional client base.

The move could give investors an alternative to conventional cross-border equity trading, which typically involves rigid market hours, multi-day settlement cycles, and high intermediary conversion fees. By putting Asian equities on blockchain rails, Payward and GTN aim to offer continuous liquidity that operates independently of traditional banking schedules.