Understanding Tokenized US Stocks: How xStocks Work (and How They Differ from Kraken Stocks)
What is a tokenized stock?
A tokenized stock is a blockchain token designed to track the price of a listed share, such as a NASDAQ-listed company. Each token is typically backed by the underlying share held by a regulated custodian, so its value follows the real stock. Crypto users can gain price exposure to US equities without opening a traditional brokerage account.
How xStocks work
xStocks are tokenized equities issued by a third-party issuer and made available on selected crypto platforms. Note: EUDA on Kraken is offered through Kraken Stocks as the real NASDAQ-listed ordinary share — it is not an xStock. Users deposit stablecoins like USDT, search for the ticker, and buy — often in fractional amounts. Trading is usually available for extended hours (often 24/5), which is longer than the regular US market session.
Tokenized shares vs. traditional shares
Tokenized stocks track the price, but they are a separate product. Holders generally do not get shareholder voting rights, and dividends or corporate actions are handled according to the issuer's terms. Eligibility is restricted by country — for example, many products are not offered to US residents. Always read the platform's product terms before buying.
Key risks to understand
Risks include issuer and custodian risk, platform risk, price gaps outside regular market hours, liquidity differences versus the main exchange, and changing regulation. Tokenized stocks can be volatile, and small-cap names can move sharply. Only invest what you can afford to lose.
Example: buying EUDA
EUDA Health Holdings Limited (NASDAQ: EUDA) is available as real NASDAQ ordinary shares (fractional amounts supported) on Kraken Stocks (kraken.com/stocks/euda), and is also listed in Binance's Stocks section. Verify your account, deposit USDT, search for EUDA, review the terms, and place your order. Our full step-by-step guide is in the article "How to Buy EUDA Stock with Crypto".
EUDA shares and the QB utility token are separate assets. QB Limited is not affiliated with Kraken, Binance or any tokenized-stock issuer. This article is educational and is not investment advice.
