Kraken-affiliated Payward Services has unveiled a tokenized IPO program that will provide retail investors access to U.S. public offerings at the same price offered to institutional buyers. According to the company's announcement, Kraken users and xStocks Alliance members will soon be able to register interest in upcoming U.S.-listed IPOs before companies begin trading on public markets. Eligible investors who receive allocations will obtain tokenized shares on listing day at the IPO offering price. The move builds on Kraken's expansion into tokenized equities, with the company previously stating that its xStocks ecosystem had surpassed $25 billion in transaction volume in under eight months, including more than $3.5 billion settled on-chain and serving over 80,000 holders.
The company said the shares will be backed 1:1 by the underlying stock, which will be held in custody by a regulated entity. As reported by Payward Services, the structure is designed to give retail investors access to allocations that have traditionally been available mainly to institutional clients and high-net-worth investors. The process involves participating exchanges opening an indication-of-interest period several weeks before a company's public debut, during which customers can submit non-binding requests to purchase shares within the expected pricing range. According to Mark Greenberg, Global Head of Payward Services, retail investors have historically faced barriers to IPO participation, with access often limited by geography and net worth.
According to Bernstein Research, the tokenized real-world asset market has reached $51 billion, growing 42% this year. Payward Services also disclosed strong performance figures for its tokenized equities network, with xStocks processing more than $30 billion in transaction volume during its first year, including over $6 billion settled on-chain. The platform serves more than 125,000 holders worldwide and has processed more than $30 billion in transaction volume, including over $6 billion settled on-chain. The company did not disclose which IPOs will be included in the initial rollout or identify participating underwriting firms.
The initiative comes after Kraken acquired xStocks operator Backed Finance in late 2025 and outlined plans to introduce regulated Bitcoin perpetual futures in the United States through infrastructure obtained from its Bitnomial acquisition. As reported by Payward Services, the first tokenized IPO opportunities are expected to become available to Kraken users and other xStocks Alliance participants in the coming weeks. The company will aggregate demand across xStocks Alliance members and work with underwriting syndicates to secure allocations. Once the IPO is completed, allocated shares will be tokenized and distributed to eligible investors through participating platforms. The company plans to expand the service to additional markets and partners over time.
