July 22, 2026 | NCFA Market Activity | Capital Markets And Market Infrastructure, Digital Assets, Wealth Investing And Trading

GTN Connects xStocks With More National Markets

On July 22, 2026, GTN and Payward partnered to take xStocks beyond U.S. equities. Hong Kong listed shares come first. Payward expects UK, European and South Korean assets to follow.

GTN will execute trades in the underlying shares, hold them in custody and maintain the records connecting those assets with the tokens in circulation. Its network reaches more than 90 markets, giving Payward access to established brokerage and custody relationships in each country it enters.

Every xStock still starts with a conventional market transaction. A broker buys the referenced share or exchange traded fund, a custodian holds it and Backed Assets (JE) Limited issues the matching token. Redemption reverses the process.

The token can then trade through exchanges, wallets and decentralized applications, including when the underlying stock market is closed. However, that flexibility creates a pricing risk. When the share isn’t trading and direct creation or redemption is unavailable, market makers have to keep the token reasonably close to the underlying asset.

The GTN arrangement is live, although access won’t arrive everywhere at once. Payward says Hong Kong products will begin appearing this week. GTN can distribute xStocks to institutional clients only after securing the required licences.

Payward Can Sell The Same Product Through Competitors

Kraken launched xStocks with 60 U.S. stocks and ETFs in June 2025. Unlike a stock balance held inside one brokerage account, an xStock can be withdrawn to a personal wallet and transferred to another supporting platform.

Since then, Payward has added exchanges, wallets, blockchains and professional trading firms. In July 2026, OKX launched more than 40 xStocks for eligible users across several international regions.

OKX competes directly with Kraken. Supplying the same product to a rival exchange shows that Payward wants wide distribution, even when another company owns the customer relationship.

The products now do more than spot trading. Kraken Pro accepts selected xStocks as collateral for eligible margin and futures positions. Professional firms can connect directly to issuance and redemption, while separate perpetual futures provide leveraged exposure to tokenized equity prices.

Payward gained control of the product developer when it acquired Backed Finance. The deal was announced in December 2025 and completed in January 2026.

A planned gateway with Nasdaq could add a second type of product. Current xStocks are certificates created by an unrelated third party. By contrast, Nasdaq intends its proposed equity tokens to involve the public company and preserve the rights attached to the actual security.

Payward could eventually distribute both types through connected services. Investors will need a clear answer on whether each token represents a share, tracks a share or provides derivative exposure to its price.

An xStock Tracks A Share But Doesn’t Make You A Shareholder

Backed Assets (JE) Limited, a Jersey special purpose vehicle, issues the existing xStocks. Legally, the products are bearer debt instruments classified as tracker certificates.

The holder receives economic exposure to a stock or ETF but doesn’t own the referenced company’s shares. That means no voting rights, direct shareholder information rights or residual claim against the company.

The issuer reinvests dividends received on the underlying shares, net of applicable taxes, and adjusts token balances to reflect the additional holdings. It handles stock splits and reverse splits through similar balance changes.

xStocks says dedicated collateral accounts hold the corresponding security for each product. After an issuer default, an independent security agent can take control of those accounts and distribute proceeds under the legal documents.

That protection is useful, but it doesn’t put the holder in the same position as a shareholder. Recovery may come through cash from liquidated collateral rather than delivery of the shares. Custodian failure, broker failure, legal disputes or operating problems could also delay or reduce the amount recovered.

The difference can be seen in Figure’s blockchain common stock. Figure issued company equity through a public securities process. An xStock is a separate certificate tied to a share held elsewhere.

Who Is Competing And How Their Models Differ

GTN and Payward say xStocks now has more than 500 assets, nearly 200,000 holders and more than US$35 billion in transaction volume. These are company reported figures. Trading volume isn’t the same as the value of the tokens currently outstanding, and the public catalogue may not show every asset counted across venues and blockchain networks.

Companies are approaching tokenized equities from several directions.

xStocks uses common token contracts that can circulate through Kraken, third party exchanges, wallets and blockchain applications. Wide distribution is its advantage. The current products don’t provide direct shareholder rights.

Ondo Global Markets offers a large catalogue of tokenized U.S. stocks and ETFs through blockchain networks. It competes on product breadth, onchain access and the amount of tokenized exposure in circulation.

Dinari connects its dShares products with regulated brokerage operations, reserve reporting and shareholder economics. Its offer places more weight on the regulated securities relationship behind each token.

Robinhood controls the customer account, token product and distribution experience. Its European tokenized stock offer is more closed than xStocks, but that control can make pricing, compliance and customer support easier to manage.

Coinbase has sought permission to add tokenized equities in the United States. Its exchange, custody relationships and large customer base would provide immediate distribution if regulators approve the product.

Nasdaq and other established market operators are working on issuer sponsored digital shares that remain close to recognized exchanges, transfer agents and market supervision. Those products may travel less freely, but they are designed to preserve the legal rights attached to the security.

Access Still Depends On Local Rules

xStocks aren’t currently available to retail clients in Canada, the United States or the United Kingdom. The Canadian exclusion is notable because Payward Canada is registered as a restricted dealer. Canadians can use Kraken’s approved crypto platform, but that registration doesn’t authorize xStocks.

GTN gives Payward the brokerage, custody and records needed to add shares from more countries. Even so, local securities rules will decide where those products can actually be sold.

Talking Point

Can Payward scale xStocks across markets and product types without blurring the difference between owning a share and tracking one?

Information notice: Company figures are identified and attributed where applicable. Product availability and legal treatment vary by jurisdiction and may change after the stated update date. This content is provided for informational purposes only and does not constitute investment, financial or legal advice.