Payward, the parent company of cryptocurrency platform Kraken, has partnered with fintech infrastructure provider GTN to expand its tokenized equity product, xStocks, beyond the United States and into a wider range of global markets.
The partnership is expected to begin with the tokenization of equities listed in Hong Kong, followed by planned expansion into the United Kingdom, Europe, South Korea and other international regions. The rollout remains subject to regulatory approvals in each jurisdiction, with the companies seeking the licenses and permissions required before offering tokenized securities in those markets.
Under the agreement, GTN will provide execution, custody and record-keeping services across more than 90 markets. That infrastructure is intended to help xStocks scale internationally by connecting tokenized versions of traditional shares and exchange-traded funds with regulated market access, settlement support and asset servicing.
xStocks allows stocks and ETFs to be represented as blockchain-based tokens while being backed 1:1 by the underlying securities. Payward acquired xStocks in December and has since used the product to bring more than 500 tokenized U.S. assets to market. The platform reportedly serves more than 200,000 holders.
Data from RWA.xyz shows that tokenized equities currently account for about $1.94 billion in value. xStocks represents roughly $515 million of that total, making it the second-largest provider in the category behind Ondo, which has about $887 million in tokenized assets.
The move highlights the growing competition to bring traditional financial instruments onto blockchain networks, where they can settle faster, trade in more flexible environments and connect with digital asset infrastructure. It also adds momentum to a sector that has attracted growing attention from fintech companies, asset managers, blockchain developers and traditional market infrastructure providers.
Payward looks beyond U.S. tokenized stocks
The initial focus on Hong Kong-listed equities is significant because it gives xStocks a path into one of Asia’s most important financial markets. Hong Kong has long served as a gateway between global capital and Chinese companies, and it remains a central listing venue for major technology, finance, property and consumer businesses.
By beginning there, Payward and GTN are targeting demand for access to non-U.S. shares in tokenized form. Although U.S. stocks have dominated much of the early tokenized-equity market, global equities remain far broader than the U.S. market alone. Shares listed in Asia and Europe could give traders more ways to gain exposure to regional companies without relying only on conventional brokerage routes.
The planned expansion into the United Kingdom, Europe and South Korea points to a wider strategy. These regions have large public markets, active fintech sectors and developing regulatory frameworks for digital assets. They also have different rules around securities distribution, custody and market access, making the regulatory approval process a critical part of the rollout.
Payward said the expansion will take place only where approvals are granted. That is important because tokenized equities sit at the intersection of securities law, digital asset rules, custody requirements and cross-border market access. A token may trade on a blockchain, but if it represents a real-world share or ETF, it still raises many of the same legal questions as the underlying financial product.
What GTN brings to the partnership
GTN’s role is central to the planned expansion. The company provides market infrastructure that supports access to listed securities across more than 90 markets. Its services include trade execution, custody and record-keeping, which are essential functions for any platform offering tokenized versions of traditional assets.
Execution matters because tokenized equity products must be linked to the purchase, sale or management of the underlying securities. Custody matters because the real shares or ETFs backing the tokens must be held securely and properly accounted for. Record-keeping matters because holders, issuers and regulators need accurate information about ownership, transfers and corporate actions.
In traditional markets, these functions are handled by brokers, custodians, clearing systems and transfer agents. Tokenized products may use blockchain rails for distribution and settlement, but they still need reliable links to the regulated financial system. A tokenized stock product that claims 1:1 backing depends on the integrity of that connection.
Through GTN, xStocks aims to build that bridge across multiple jurisdictions. The arrangement could make it easier for Payward to add new markets once local approvals are obtained, rather than building separate infrastructure from the ground up in each country.
How xStocks works
xStocks are blockchain-based tokens that represent traditional stocks and ETFs. The core promise of the product is 1:1 backing, meaning each token is tied to an equivalent amount of the underlying security or economic exposure to that security.
For traders, the appeal is straightforward. Tokenized equities can be held in digital wallets, moved across compatible blockchain infrastructure and potentially used in decentralized finance applications. They may also offer access outside the operating hours of traditional exchanges, depending on the platform and market rules.
However, tokenized shares are not the same as directly holding stock through a conventional brokerage account. Rights can vary depending on the legal structure of the product. Questions such as dividend treatment, voting rights, redemption mechanics, custody, transfer restrictions and regional eligibility can differ across providers and jurisdictions.
That distinction is important as tokenized equities expand internationally. A trader buying a tokenized version of a Hong Kong-listed share, for example, may not have the same legal relationship to the issuer as a shareholder recorded directly through the traditional market system. The exact rights must be defined by the product documents, local law and the provider’s structure.
Payward has said xStocks is compatible with more than 100 exchanges, wallets and decentralized finance applications. If that network grows, tokenized equities could become more usable across digital asset platforms. Still, broader use will depend on compliance rules, liquidity, custody standards and the willingness of platforms to support regulated securities tokens.
Tokenized equities gain ground
Tokenized equities are part of the broader real-world asset, or RWA, tokenization market. This sector includes digital representations of assets such as government bonds, private credit, money market funds, commodities, real estate and company shares.
The tokenized-equity segment remains smaller than some other RWA categories, but it is expanding as more firms test blockchain-based distribution and settlement. RWA.xyz data showing about $1.94 billion in tokenized equities suggests the market is still early compared with global public equity markets, which are worth tens of trillions of dollars.
Even so, the growth of products such as xStocks shows that demand exists for blockchain-based access to traditional securities. Tokenized shares may appeal to traders who already use digital wallets and stablecoins and want exposure to stocks or ETFs without leaving crypto-native infrastructure.
The strongest use cases are still being tested. Some traders may use tokenized equities for simple market exposure. Others may use them as collateral, as part of structured products or inside decentralized finance protocols. The ability to move tokenized assets quickly between platforms could create new forms of liquidity, though it also introduces operational and regulatory risks.
The market is also fragmented. Different providers use different blockchains, legal structures, custodians and compliance models. That means liquidity may not be uniform, and tokens representing similar underlying securities may not be interchangeable across platforms.
Competition is increasing
Payward is not alone in pursuing tokenized securities. Several firms are developing products that link blockchain tokens to traditional financial instruments.
Securitize recently issued its own stock onchain during its initial public offering, marking a notable example of a company using blockchain infrastructure directly in a public-market process. Other firms, including Superstate, are working on tokenized securities products tied to traditional assets.
Ondo remains the largest tokenized-equity provider tracked by RWA.xyz, with about $887 million in tokenized assets. xStocks follows with about $515 million. The presence of multiple providers suggests the sector is moving from experimentation toward a more competitive phase, though it remains small compared with conventional equity markets.
Competition could accelerate product development, reduce costs and improve access. It could also push providers to clarify legal rights, improve disclosures and build stronger custody frameworks. For the market to grow, traders will need confidence that tokenized securities are properly backed, transferable, redeemable and compliant with the rules that apply in their locations.
Traditional financial institutions are watching the sector closely. Many already use digital systems for securities settlement and record-keeping, but public blockchains offer a different model: assets can be represented as programmable tokens that operate across networks and applications. Supporters believe this could reduce settlement delays and create more efficient markets. Critics warn that securities markets are complex for a reason and that tokenization must not weaken protections, transparency or oversight.
Regulatory approvals remain the key hurdle
The largest barrier to global expansion is regulation. Tokenized equities are not simple crypto tokens. They are tied to regulated financial instruments, which means providers must comply with securities laws, market access rules, anti-money-laundering standards, custody requirements and consumer protection obligations.
Those rules vary widely by jurisdiction. Hong Kong, the United Kingdom, European countries and South Korea all have their own regulatory systems. Some have moved faster than others in creating frameworks for digital assets and tokenized securities. Even where rules are clearer, firms may still need approvals before making products available to local or foreign users.
Restrictions may also apply based on the residence or status of traders. Some tokenized products may be available only to qualified or professional participants in certain regions. Others may be limited by sanctions rules, securities distribution rules or platform-specific compliance checks.
That makes the coming phase less about technology alone and more about licensing, legal structure and market supervision. Payward and GTN may have the infrastructure to support access across many markets, but each launch depends on whether regulators allow the product and under what conditions.
Regulatory clarity could support growth if it gives firms a defined path to operate. Uncertainty, by contrast, could slow expansion or limit availability in major markets.
Why the expansion matters
The partnership reflects a broader attempt to connect traditional markets with blockchain-based financial infrastructure. If successful, tokenized equities could make foreign shares easier to access for eligible traders, especially those already active in digital asset markets.
Traditional access to overseas stocks can involve multiple intermediaries, local market hours, currency conversion, settlement delays and account restrictions. Tokenization does not automatically remove all of those barriers, but it can change how ownership exposure is recorded, transferred and integrated with other financial tools.
A tokenized Hong Kong stock, for example, could potentially be held in the same wallet as stablecoins, tokenized Treasury products and other digital assets. It could also be moved between supported platforms more easily than a conventional share held inside a single brokerage account. These features explain why tokenized equities have attracted attention from both crypto-native firms and traditional finance companies.
Still, the outcome will depend on execution. Tokenized stocks need deep liquidity, reliable pricing, strong custody and clear redemption processes. They also need transparent information about fees, market hours, rights and risks. Without those elements, tokenization may add complexity rather than reduce it.
Market outlook
Payward’s partnership with GTN gives xStocks a stronger foundation for international growth, but the timeline remains tied to regulatory approvals. The companies have identified Hong Kong as the first target, with further expansion planned for the United Kingdom, Europe, South Korea and other markets.
The deal also signals that tokenized equities are becoming a more serious part of the real-world asset market. The segment is still small, but it is attracting established infrastructure providers and competing platforms. As more traditional securities move onchain, the market will likely face closer scrutiny from regulators and greater demand for transparency from traders.
For now, xStocks’ expansion plan is best understood as part of a larger transition. Financial firms are testing whether blockchain networks can support regulated assets at scale. Tokenized equities are one of the most visible tests of that idea because they connect directly to public companies, ETFs and global stock markets.
If the model works, traders could see broader access to international equities through blockchain-based platforms. If legal, liquidity or custody problems emerge, growth could be slower and more limited. The next stage will depend not just on technology, but on whether tokenized securities can meet the standards expected in regulated global markets.
Curious how tokenized equities work in practice? Learn the basics in this guide before diving deeper.
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