xStocks are not available in the U.S. or to U.S. persons. Geo restrictions apply. Read Kraken's xStocks Risk Disclosure and the Base Prospectus and related Final Terms for more information.
How xStocks Extends IPO Access
Discover how xStocks connects eligible investors to selected IPOs, from expressing interest to receiving tokenized exposure.
Key Takeaways
- xStocks builds on the existing IPO process rather than replacing it.
- Companies, underwriters, and regulators continue to perform the same roles they do in traditional IPOs.
- For selected offerings, participating platforms can collect indications of interest from eligible investors before trading begins.
- IPO availability depends on the offering, partner platform, and applicable eligibility requirements.
The process of taking a company public has remained remarkably consistent for decades.
Companies appoint underwriters. Investors express interest during book-building. Shares are allocated, priced, and begin trading on a public exchange.
That process isn't changing.
What is changing is how investors connect to it.
A new distribution model
Historically, participating in an IPO meant investing through a brokerage connected to the underwriting syndicate.
As digital investment platforms have evolved, new distribution models have emerged alongside traditional brokerage channels. Tokenized equities are one example.
Rather than changing how companies raise capital, tokenization creates another way for eligible investors to participate through supported platforms.
Where xStocks fits
xStocks builds on the same infrastructure that already supports tokenized equities in secondary markets.
For selected IPOs, participating platforms can collect non-binding indications of interest from eligible users before a company begins trading. That demand is aggregated and presented during the allocation process alongside existing distribution channels.
If an allocation is secured, successful participants receive tokenized exposure at the IPO price rather than purchasing shares after public trading has already begun.
What stays the same?
The core mechanics of an IPO remain unchanged.
Companies continue to appoint underwriters. Investment banks continue to manage book-building, pricing, and allocation. Securities regulators continue to oversee the offering.
xStocks doesn't replace the traditional IPO process. It expands the ways eligible investors can connect to it.
What this means for investors
IPO availability through xStocks depends on the offering, participating platforms, and investor eligibility.
Not every IPO will be available through xStocks, and availability may vary by jurisdiction.
Where supported, xStocks provides another pathway for eligible investors to participate in public offerings through blockchain-based infrastructure.
More in Learn
Keep reading.
What Are Tokenized Equities
Learn what tokenized equities are, how they work, and how they connect traditional stocks and ETFs to blockchain.
Why Are Capital Markets Moving Onchain
Learn how capital markets are moving onchain, why assets are being tokenized, and where tokenized equities fit.
How xStocks Works
Learn how xStocks are backed and issued, how the ecosystem works, and how users access them through partner platforms.
Important Information
xStocks are not available in the U.S. or to U.S. persons. Geo restrictions apply. Read Kraken's xStocks Risk Disclosure and the Base Prospectus and related Final Terms for more information. This content is partner enablement material, not investment advice. IPO-related content carries additional communication rules - see the brand kit before repurposing. In the EEA and most countries outside the US, IPO access on Kraken is via xStocks - tokenized securities issued by Backed Assets (JE) Limited pursuant to an EU-registered prospectus, providing price exposure only. xStocks are not equity and confer no voting or shareholder rights. Allocation is subject to underwriter decisions and is not guaranteed; any funds not allocated are returned. The value of investments may go down as well as up. Not available in the U.S. or to U.S. persons, or in the United Kingdom, Canada or Australia. Geo restrictions apply. xStocks are made available in the EEA by Payward Europe Digital Solutions (CY) Limited, regulated by CySEC (licence no. 342/17); and elsewhere by Payward Digital Solutions Ltd., regulated by the Bermuda Monetary Authority.