Payward, parent company of crypto exchange Kraken, announced it will soon offer tokenized shares of U.S. initial public offerings (IPOs) to eligible retail investors through Kraken and its xStocks Alliance members. Investors can submit non-binding indications of interest before an IPO, aggregate demand is used to secure allocations from underwriters, and shares are tokenized one-for-one backed by underlying stock held by a regulated custodian. The initiative aims to democratize access to IPOs, traditionally limited to institutional investors and wealthy clients. The first offerings are expected in coming weeks, with high-profile potential IPOs like SpaceX and AI startups Anthropic and OpenAI generating demand. Tokenized equities are part of a broader trend using blockchain for traditional assets, with Payward's xStocks framework processing over $30 billion in volume and $6 billion in onchain settlements. Risks include oversubscription, price changes, and volatility. Allocations are only offered when secured.

Key facts

• Payward to offer tokenized IPO shares via Kraken and xStocks Alliance.
• Retail investors can receive allocations at IPO price, not secondary market.
• First tokenized IPO offerings expected in coming weeks.
• xStocks framework processed over $30B in volume and $6B onchain.
• IPO allocations not guaranteed; risks include oversubscription and volatility.