Kraken says xStocks tokenized equities trading surpasses $5 billion as revenues double

Cryptocurrency exchange Kraken said Wednesday that users have traded over $5 billion of xStocks tokenized equities since the company launched the new offering through a partnership with Backed.

The trading of xStocks tokenized U.S. equities — only available to users outside the U.S. —  "surpassed $5 billion in combined CEX and DEX volume, generated over $1 billion in on-chain transactions and reached more than 37,000 unique holders," Kraken said in a statement.

Tokenized equities are poised to be one of crypto's largest growth areas, especially if the U.S. can establish a regulatory framework that fosters participation and innovation. xStocks allows non-U.S. investors "to gain exposure to traditional equities through digital assets that can trade permissionlessly, around the clock and across multiple ecosystems."

Kraken partnered with Backed to launch its own xStocks' initiative back in July. Last month, Kraken expanded to Europe. The company said xStocks is available to users in more than 160 countries, thanks in part to working with Bybit, Phantom, OKX Wallet, and Telegram.

The cryptocurrency exchange released the new trading data alongside its third-quarter earnings results. Kraken posted $648 million in revenue, more than double what it generated a year ago, and a new record, according to the company. In the third quarter of last year, Kraken registered $303.5 million in revenue.

Kraken's adjusted EBITDA also jumped considerably, climbing to $178.6 million, compared to a loss of $6.8 million a year ago. The company also said transaction volume rose to $561.9 billion, a 23% increase quarter-over-quarter.