Kraken's Parent Company Payward Opens Tokenized US IPO Access to Global Retail Investors

How the Tokenized IPO Process Works

The mechanism is designed to mirror traditional IPO book-building but with a wider funnel. Here's how it works step by step:

• Indication of Interest Window: In the weeks leading up to a company's public listing, partner exchanges in the xStocks Alliance open a window where their customers can submit non-binding offers to buy shares within the company's indicated price range. This is not a guaranteed allocation yet — it's an expression of demand .

• Demand Aggregation and Pricing: Payward Services acts as the central coordinator, aggregating that retail demand from all xStocks Alliance members and working directly with an underwriting syndicate. This pooled approach aims to give the collective retail interest enough heft to secure meaningful allocations .

• Allocation and Token Issuance: On the actual listing day, allocations are finalized and investors who participated receive tokenized shares at the IPO offering price. That's the same price institutional participants get — not the often-inflated price that retail traders typically see when a hot stock starts trading on the open market. The pricing, allocation, and token issuance are all completed on listing day .

• Custody and Backing: Each tokenized share is backed 1:1 by the underlying share held in custody by a regulated entity. The xStocks tokens themselves are blockchain-agnostic and interoperable across chains, meaning they're accessible through any platform in the xStocks Alliance, not just Kraken .

This structure is built on the same 1:1 backing model Kraken has used for xStocks since launch. Alpaca, a regulated brokerage infrastructure provider, serves as the preferred venue for sourcing and custodying the underlying equities that back xStocks tokens . The tokens are issued by Backed Assets (JE) Limited, a Jersey private limited company, and offered to eligible Kraken customers via Payward Digital Solutions Ltd., licensed by the Bermuda Monetary Authority .

The xStocks Growth Story

This IPO access launch is the latest step in a remarkably fast ramp for tokenized equities. Here's how the xStocks platform has scaled since its debut in June 2025:

• June 2025: xStocks launches with 60 tokenized US stocks and ETFs, initially on Solana, available to Kraken clients in over 160 countries .
• November 2025: Surpasses $10 billion in combined CEX and DEX transaction volume in just 135 days, with nearly $2 billion onchain .
• December 2025: Kraken acquires Backed Finance AG, the company that originally developed the xStocks framework, bringing issuance fully in-house .
• February 2026: Surpasses $25 billion in total transaction volume .
• March 2026: Expands to 100 tokenized US stocks and ETFs — up from 60 at launch — and unveils xChange, a unified execution layer for onchain trading. Onchain volume reaches ~$3.5 billion with 80,000+ unique holders . Also in March, Payward partners with Nasdaq to build a gateway connecting traditional stock markets with blockchain networks, enabling tokenized equities to move between regulated institutional markets and permissionless DeFi networks .
• June 2026: Volume crosses $30 billion total, with $6 billion+ settled onchain and 125,000+ unique holders. Payward announces plans to expand xStocks listings toward 500+ by year-end 2026 .

It's worth putting those holder numbers in context: in December 2024, the entire tokenized stock market had fewer than 1,500 total holders across all platforms. By March 2026, that sector-wide figure had crossed 185,000 holders, according to market data analyses .

The Broader Context: Tokenized Assets Are Surging

Payward's move lands at a moment when tokenized real-world assets are seeing serious momentum. The tokenized RWA market (excluding stablecoins) surpassed $51 billion in mid-2026, growing 42% annually according to a Bernstein report . That's up from approximately $21 billion at the start of 2026 — a roughly 30% increase in a single quarter .

Longer-term projections vary but consistently point up. The global asset tokenization market was estimated at $1.76 trillion in 2025, with forecasts projecting it will reach $24.5 trillion by 2033 at a compound annual growth rate of 42.1% . Other estimates from industry analysts place the figure even higher, though these represent different market definitions and methodologies .

What's clear is that tokenized equities are one of the fastest-growing slices of that pie. Kraken's xStocks alone represents 68% of the top 25 tokenized stocks by unique holders as of March 2026, and the company has publicly claimed it represents 7 of the top 10 tokenized stocks by 24-hour trading volume .

What's Next for xStocks Alliance

The first tokenized IPO allocations are expected in the coming weeks. Payward plans to roll out the service first to Kraken customers and select xStocks Alliance members, with additional launch partners and new markets to follow through 2026 .

For Kraken itself, the tokenized IPO announcement sits adjacent to another milestone: the company confidentially filed its own S-1 draft registration with the SEC in November 2025 for a proposed initial public offering of its common stock. No price range or share count has been set yet, and the offering will only proceed after SEC review and under market conditions .

In the meantime, the bigger picture is a financial infrastructure play that's moving from experiment to established product. Tokenized IPO access — at the offering price, on blockchain rails, to anyone with an internet connection in over 100 countries — is a signal that the walls between traditional capital markets and the crypto-native economy are getting lower.