The Alpaca Kraken xStocks partnership marks a notable step in how tokenized equities are sourced, issued, and distributed globally. Kraken has confirmed an expanded strategic agreement with Alpaca that deepens their existing relationship around xStocks, its fully collateralized tokenized equities product.

The update formalizes Alpaca’s role across custody, sourcing, and distribution, while also tying xStocks more closely into Alpaca’s Instant Tokenization Network. Together, both companies are positioning xStocks as a more accessible option for institutions and developers operating outside the United States.

The announcement builds on several years of collaboration between the two firms and reflects growing demand for compliant, real time tokenization infrastructure.

Alpaca Takes a Central Role in xStocks Infrastructure

Under the expanded agreement, Alpaca becomes Kraken’s preferred partner for sourcing and custodying the equities that back xStocks on a one to one basis. This means the traditional shares underlying xStocks will continue to be held and managed through Alpaca’s brokerage infrastructure.

Alpaca will also explore deeper distribution opportunities by integrating xStocks into its brokerage as a service API. This allows fintech platforms, developers, and institutional partners to support buying and selling tokenized equities using familiar brokerage workflows.

Since launching in June 2025, xStocks have surpassed $10 billion in combined transaction volume across centralized and onchain environments, according to the companies. Alpaca has already been involved as a custodian during the early growth phase, and the new agreement extends that role into future roadmap planning and partner integrations.

Learn more: Tokenized Stock Trading Now Live: Kraken, Bybit, and Solana

Instant Tokenization Network Expands xStocks Access

A key element of the Alpaca Kraken xStocks partnership is the inclusion of xStocks as a preferred product on Alpaca’s Instant Tokenization Network, or ITN. The ITN is designed to support real time minting and redemption of tokenized assets backed by traditional securities.

By integrating xStocks into ITN, institutional partners gain faster access to mint and redeem tokenized equities without relying on delayed settlement processes. The companies describe this as a step toward institutional grade tokenization infrastructure that operates across both traditional and blockchain based rails.

At present, xStocks remain available only in certain non U.S. jurisdictions. Both Kraken and Alpaca have stated that geographic expansion depends on regulatory approvals, and no specific timelines have been confirmed.

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Why This Partnership Matters for Tokenized Equities

The expanded partnership reflects a shared focus on building compliant and globally accessible markets for real world asset tokenization. Kraken has positioned xStocks as a live, operational product rather than a pilot, while Alpaca brings established brokerage and custody capabilities into the tokenization process.

Together, the companies see opportunities to extend xStocks beyond equities into additional regulated tokenized securities as regulatory frameworks evolve. For now, the emphasis remains on strengthening infrastructure, liquidity access, and interoperability between traditional finance and onchain systems.

The Alpaca Kraken xStocks partnership highlights how established trading platforms and brokerage providers are converging to support tokenized assets at scale, without changing existing regulatory boundaries.