Payward and GTN Partner to Expand xStock Tokenization Globally

Payward, the parent company of Kraken, has collaborated with fintech infrastructure provider GTN to expand its xStock tokenization service globally. This partnership, announced on Wednesday, aims to broaden the reach of tokenized equities and potentially other asset classes over time.

The initial phase of this collaboration will focus on tokenizing equities from Hong Kong, with subsequent expansion planned for the UK, Europe, South Korea, and other international markets. This initiative seeks to address the fragmentation of capital markets across different countries, currencies, and market hours, which a Payward Services executive attributed to legacy financial infrastructure. GTN will provide the essential execution, custody, and record-keeping infrastructure across more than 90 markets. This support will enable xStocks to scale internationally, contingent on obtaining the necessary regulatory approvals and licenses in each market. Once licensed, these tokenized xStocks will become accessible to GTN’s institutional clientele.

In addition to its tokenization technology, Payward’s xStocks offering incorporates onchain functionalities designed to make these assets transferable across a wide range of exchanges, wallets, and decentralized finance applications. Payward acquired xStocks in December, and the platform has since become a significant provider of tokenized equities, offering over 500 tokenized U.S. assets and reporting more than 200,000 holders. The total value of tokenized equities currently stands at approximately $1.94 billion. xStocks accounts for $515 million of this figure, positioning it as the second-largest provider in the sector, following Ondo, which holds $887 million in tokenized assets. Other entities, such as Superstate and Securitize, are pursuing strategies that involve issuing actual securities onchain, rather than solely tokens backed by real stocks.