Payward expands its xStocks platform to include 200 European equities, including the full DAX index, as total assets under management surpass $1.1 billion.
Kraken's xStocks is adding all 40 DAX companies, including SAP, Siemens and Allianz, to its tokenized platform, creating a new crypto-based distribution channel for the index's constituents. Because each token is backed by shares held with a regulated custodian, growing demand could translate into some buying of the underlying stocks. However, the tokens are unavailable to UK and US investors, limiting the addressable demand, so the price effect on the index itself is likely marginal.
Kraken parent Payward has expanded its xStocks platform by adding over 200 UK and European shares, including all 40 constituents of the DAX index. The platform, which now holds more than $1.1 billion in assets, provides synthetic exposure to equities through tokens backed by shares held with a regulated custodian. Despite the expansion, the tokens remain unavailable to investors in the U.K. and U.S.
Possibly over time, since each token is backed by shares held with a custodian, but the tokens are not available to UK or US investors, so the added demand is likely modest.