Payward, the parent of crypto exchange Kraken, announced plans to let retail investors participate in U.S. IPOs at the offering price using tokenized shares.
The company said Wednesday it will soon allow customers of Kraken and other xStocks Alliance members to buy into U.S.-listed initial public offerings through tokenized equities. Under the framework, IPO allocations will be aggregated across platforms, with tokenized shares backed one-for-one by underlying stock held by a regulated custodian. The first offerings are expected in the coming weeks. Payward noted the initiative forms part of broader efforts to expand access to capital markets via blockchain technology. The xStocks framework has processed more than $30 billion in transaction volume and over $6 billion in onchain settlements. The firm will only offer IPOs where it has secured allocations, a Payward spokesperson said. Pre-IPO investing carries risks including oversubscription and price volatility once trading begins.
