xStocks frequently asked questions

xStocks are tokenized representations of real U.S. stocks and ETFs. Each xStock is backed 1:1 by the underlying equity, held in regulated custody, and issued as an onchain token on Solana, Ethereum, TON, and Ink.

xStocks do not confer shareholder rights like voting or dividends paid as cash. They offer price exposure to the underlying asset and pass on the economic benefit of dividends via a rebasing mechanism — not direct shareholder rights.

Unlike traditional brokerage models, xStocks remove friction, costly fees, limited market hours, and complex onboarding, offering instant settlement, fractional investments, 24/7 market access (for select assets), and self-custody. xStocks are built on blockchain technology and use smart contracts for transparency, automation, and cost-efficiency.

xStocks are available to eligible non-U.S. clients in 110+ countries. They are not accessible in the US (or to US persons), Canada, UK, or Australia.

The following 10 xStocks trade 24/7 on Kraken Pro: $TSLAx, $QQQx, $SPYx, $NVDAx, $CRCLx, $AAPLx, $HOODx, $MSTRx, $GLDx, $GOOGLx.

All other xStocks trade 24/5 and not available on weekends. When withdrawn to a self-hosted wallet, xStocks can be traded 24/7 onchain via DEX integrations.

Yes, self-custody is supported. You can withdraw your xStocks to a compatible wallet on Solana, Ethereum, TON, or Ink. xStocks tokens are permissionless and freely transferable onchain.

No. xStocks are onchain tokens — they cannot be transferred to a traditional brokerage account. Holding xStocks is not the same as buying a share of the underlying company. xStocks provide exposure to the value of the stock but do not carry shareholder rights, voting rights, or any legal claim to the underlying company shares or residual assets in the event of the underlying company's liquidation.

You can buy xStocks using fiat, crypto, or stablecoins (including USDC and USDG). Kraken handles the conversion during the trade. Note: USDT is not directly supported, convert to USDC or USD first.

xStocks allow fractional purchases with as little as $1 USD.

On Kraken:

• No trading fees when purchasing xStocks with USDG or USD.

• Standard Instant Buy trading fees apply when purchasing with other assets.

• A spread may be included in the asset price to lock in a price for each transaction.

On Kraken Pro:

• Spot orderbook: -2 bps rebate for makers, 10 bps for takers.

• Full fee schedule.
  

Conversions:

• A fixed 1% trading fee applies when converting xStocks.

During regular market hours, xStock prices are anchored to the official exchange price of the underlying equity. Market makers quote around the real-time reference price, ensuring tight alignment.

Outside market hours (extended hours and weekends), market makers use alternative data sources including ATS platforms, index futures, and internal models to approximate fair value. Spreads are wider outside market hours. When markets reopen, any price divergence is rapidly corrected via arbitrage — historically under 1% mismatch at Monday open.

Yes, but not as cash. Dividend payouts are automatically reinvested into more of the underlying asset, and your xStocks balance increases to reflect the dividend via the rebasing/multiplier mechanism. There is no separate cash credit or line item, the increase appears as a higher effective token balance in your portfolio.

The rebasing calculation: Net Dividend (after 30% US withholding tax) divided by the closing price of the underlying share on the prior day. The multiplier is updated at approximately 8:00 PM EST on the day prior to the Ex-Date.

The multiplier determines the ratio between an xStock and its underlying onchain token. Token issuers (Backed Assets (JE) Limited) update the multiplier when corporate actions like dividends or stock splits occur.

Dividend example: When a company pays a dividend, the token issuer reinvests it by acquiring more of the underlying asset, then updates the multiplier so your xStock holdings reflect the increased equity. Your xStock balance increases while the onchain token quantity stays the same.

1. You buy 1 $AAPLx with a multiplier of 1.0 → equals 1 onchain token.

2. A dividend equivalent to 0.1 shares is paid — multiplier is updated to 1.1.

3. Your $AAPLx balance now shows 1.1 shares. If you withdraw, you receive 1 onchain token, now worth 1.1 $AAPLx.
   
   Stock split example: In a 4:1 split, the multiplier is multiplied by 4. All holder balances update automatically. No user action required.
   

Your executed xStock order quantity may differ from the quantity you ordered for two reasons:

The multiplier changed while your order was open

To maintain the same onchain quantity, the xStock amount is updated if the multiplier changes.

Example:

Quantity is calculated from onchain tokens

When you place an xStock order, the order quantity is divided by the multiplier, then rounded to 8 decimal places to arrive at the onchain token quantity. This can lead to slight changes in the final displayed amount.

Example:

Kraken and Backed Assets (JE) Limited utilize secure custody, audited reserves, and blockchain infrastructure to ensure the safety and transparency of xStock holdings.

Key safeguards:

• Custody: Underlying shares are held by Alpaca Securities LLC (FINRA-regulated, SIPC member), with supplemental coverage by Lloyd's of London up to $175M aggregate. InCore Bank is a secondary custodian.

• Proof of Reserves: Published weekly onchain, verified by third-party auditors.

• Audits: Quarterly ISAE 3000 assurance audits.

• Bankruptcy remoteness: The SPV structure is designed so that if Kraken or Backed goes bankrupt, users can still claim the underlying value of their assets directly with Alpaca.

Still, investing in xStocks involves an element of risk. Read Kraken's xStocks Risk Disclosure and the Base Prospectus and related Final Terms.

Yes. xStocks are permissionless onchain tokens and can be used across DeFi protocols:

• As collateral: Deposit $TSLAx or $SPYx into Kamino (Solana) or Morpho (Ethereum) and borrow against them without selling your position.

• Liquidity provision: Add xStocks to liquidity pools on Raydium, Orca, or Byreal to earn fees.

• Lending markets: Lend xStocks to earn yield via Kamino, Loopscale, JupLend (Solana) or Euler (Ethereum).

• Earn xPoints: Hold, provide liquidity, or use lending markets to earn xPoints — Kraken's onchain incentive program (live March 17, 2026).

131 assets in total: 100 stocks, 27 ETFs, and 4 specialist assets.

Full listing at xstocks.fi or via the Kraken app.