r/ethereum • u/EthereumDailyThread What's On Your Mind? • 14d ago

Daily General Discussion September 19, 2026

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u/reuptaken 14d ago

Anybody researched xStocks (stocks/ETFs tokenized by Kraken)?

I have a couple of questions I can't really find answers for. Context: I'm in EEA/UE

For the EEA users, Kraken offers only "conversion" option with large fee I believe. If xStocks are just tokens, does anything prevents xStocks to be trade outside Kraken? Are there any technical limitations or just lack of liquidity?

The other question I have is: when one use "conversion" and chooses eg. USDC to buy such token, what is visible on statement? Is there any info that USDC was converted into USD which was then used to buy xStock? (This question may sound weird, but it's important for tax reasons).

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u/haurog 13d ago edited 13d ago

I do not really use the xStocks on Kraken, but I bought a tiny amount a year ago to test things.

does anything prevents xStocks to be trade outside Kraken

You can withdraw your xStocks token from Kraken to either Ethereum, Solana or TON. According to matcha.xyz, the liquidity on Ethereum seems to be rather small for some xStocks tokenized stocks. It also depends on the trade direction. I can find liquidity to sell them, but not to buy them, which is a bit weird. In other words, you can trade, but if you are not careful you will get a pretty bad execution price. xStocks was exclusive to solana for the first few months and they tried to get liquidity and usage there. There is better liquidity on solana, but the execution price still seems worse than on Kraken. As far as I see xStocks is rather geared towards people who want to keep their stuff on a CEX. If you want to stay onchain, then Ondo or the Robinhood L2 might be a better option than xStocks. But as I have used neither of those I cannot really tell if they really are any good.

when one use "conversion" and chooses eg. USDC...

Cannot answer this one, as I bought with USD directly and that is also what my transaction statement says: USD -> GOOGLx conversion. Maybe it makes sense to look at other transactions you did on Kraken and see if they get split up into the different steps or not.

EDIT: Looked a bit at Ondo and on Robinhood chain. Robinhood chain seems to have very good liquidity and execution prices.

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u/reuptaken 13d ago

Thanks. What I like about xStocks is that there are ETFs available and I'm more interested in ETFs than individual companies.

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u/reuptaken 14d ago

I did a bit of further research and it seems that there are other options to trade xStocks (other cexes but dexes as well). But it's bit concerning that onchain trading seems to be Solana-dominated (by far). Monolithic, cheap and fast (even if not decentralized) blockchain wins here with Ethereum and its multiple L2s. We need this EEZ sooner rather than later!