The release gives Telegram users access to tokenised US stocks via a self-custodial wallet, although it won’t be available in the US right away. xStocks, a tokenised securities platform backed by Kraken, is coming to TONNE Wallet, a self-custodial wallet on Telegram Messenger.
Kraken stated on Thursday that xStocks is now live on TONNE Wallet, which represents the official debut of the offering on The Open Network (TONNE), a blockchain linked to Telegram.
Arjun Sethi, co-CEO of Kraken, said in the announcement, “Launching xStocks on TONNE brings tokenised equities to truly open infrastructure.” He also said that this is the first time that Telegram users may access tokenised US stocks onchain.
A spokesman for TONNE Wallet said that the first release will comprise 10 tokenised equities, such as Apple (AAPLx), Amazon (AMZNx), Coinbase (COINX), Google (GOOGLx), and Strategy (MSTRx). These stocks make up at least 95% of the turnover.
It is indicated that the product will not be available at launch in important regions including the US, the EU, and Australia. Rollout would follow regulatory requirements and xStocks’ existing framework.
Access will gradually grow as regulatory guidance allows. He stressed that xStocks are not available in the US or to US citizens. Distribution will continue to follow regional rules and licensing requirements.
Tokenisation firms are still focused on the US market
XStock’s restricted deployment of TONNE in some areas shows that the company believes that tokenised US stocks should be aimed first at users in developing nations, not developed markets.
Bringing xStocks onto TONNE is part of that shift real financial products becoming available to people all over the world through familiar digital tools, not just through banks in developed markets.
Conversely, certain leading tokenisation firms have expressed a more optimistic outlook regarding the US market. Securitise, one of the leading companies in the industry, states that there is a potential regulatory pathway for tokenised securities in the United States and that its tokenised equities are already accessible to US investors.