Payward, the parent company of crypto exchange Kraken, plans to let Kraken and xStocks Alliance customers participate in U.S.-listed IPOs at the offering price through tokenized shares on the
Payward, the parent company of crypto exchange Kraken, plans to let Kraken and xStocks Alliance customers participate in U.S.-listed IPOs at the offering price through tokenized shares on the xStocks platform. The first tokenized IPOs are expected to go live in the coming weeks.
Payward Services disclosed that xStocks will soon offer a new product allowing eligible users to buy into U.S.-listed IPOs at the offering price, not just at secondary-market prices after listing. The official xStocks announcement describes this as an expansion of the existing tokenized equities platform. For related coverage, see Kraken Tokenized Stocks Collateral for Leveraged Trades.
The service targets Kraken customers and other partners in the xStocks Alliance network. Payward framed the move as opening IPO access to retail investors who are typically shut out of pre-listing allocations. For related coverage, see Kraken Pro Adds xStocks as Collateral for Margin, Futures.
Payward says the first tokenized IPOs will be available in the coming weeks, with expansion to more markets and additional Alliance partners planned after launch. This is a planned rollout, not a live service today.
The announced workflow begins with a pre-listing indication-of-interest window before the stock starts trading publicly. During this window, eligible users signal how much they want to allocate to the IPO.
On listing day, if allocation is received, tokenized shares are distributed to participants. Each tokenized share is described as backed 1:1 by the underlying equity, held through a regulated custody structure.
The tokens are issued by Backed Assets (JE) Limited and offered to eligible Kraken customers through Payward Digital Solutions Ltd., a Bermuda-licensed digital asset business. EU and EEA access runs through a MiFID II-regulated Cyprus entity.
This structure differs from ordinary secondary-market tokenized stocks. Instead of wrapping shares that already trade on exchanges, the IPO product aims to replicate the underwriting-style allocation process used by traditional brokerages, then deliver the result as a token.
The planned IPO product builds on a platform that already has meaningful traction. Payward says xStocks processed over $30 billion in total transaction volume in its first year, with more than $6 billion settled onchain.
xStocks first-year transaction volume Over $30B Official xStocks announcement says the network processed more than $30 billion in total transaction volume in its first year.The network also surpassed 125,000 unique holders in its first year, indicating a substantial base of users already comfortable holding tokenized equities.
xStocks first-year unique holders 125,000+ The same announcement says xStocks surpassed 125,000 unique holders in its first year.The broader tokenized-stocks category sits at roughly $1.08 billion in total value, according to RWA.xyz. xStocks ranks second among platforms in that segment at approximately $252.8 million, representing a 23.75% market share.
IPO-price access is a feature no major tokenized-stock platform currently offers. Competitors like Bybit list xStocks tokens for secondary trading and emphasize 24/7 access and low minimums, but none have announced a pre-listing allocation mechanism comparable to what Payward described.
Kraken has been steadily building out its xStocks integration. The exchange recently began accepting tokenized Apple, Nvidia, and Tesla shares as collateral, and Kraken Pro added xStocks as collateral for margin and futures trading, signaling deeper commitment to the tokenized equities product line.
Mark Greenberg, referenced in the announcement, said: "Going public should mean public to everyone."
xStocks are not available in the United States, Canada, the United Kingdom, or Australia. The tokens are not registered under the U.S. Securities Act and cannot be offered to U.S. persons through the xStocks platform.
U.S. users who want IPO access through Kraken have a separate path. Kraken Securities, working with Alpaca Securities and ClickIPO, facilitates U.S. IPO participation for U.S. residents. That route does not involve tokenized shares or the xStocks infrastructure.
xStocks currently run on the Solana and Ink blockchains. Kraken launched with around 60 xStock assets, minimum purchases starting from $1, and 24/5 trading hours, with weekend trading still in development.
The tokenized-equity space continues to expand beyond xStocks. BlackRock's recent SEC filing for tokenized money-market funds reflects broader institutional interest in putting traditional financial products on-chain, though through a different product structure.
When are the first tokenized IPOs expected? Payward says the first offerings will be available in the coming weeks. No specific date or IPO name has been disclosed.
Will users get the actual IPO offering price? The announcement describes allocation at the offering price on listing day, contingent on receiving allocation through the indication-of-interest process. This is not guaranteed participation.
Is the product available globally? No. xStocks are excluded from the U.S., Canada, the UK, and Australia. Expansion to more markets is planned but not yet confirmed. Eligible jurisdictions are determined by the regulatory entities involved, including Payward Digital Solutions Ltd. in Bermuda and a MiFID II entity in Cyprus.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making any investment decisions.
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