Retail investors will soon have the opportunity to purchase shares in US initial public offerings (IPOs) at the official offering price through a new tokenized equities initiative launched by Payward Services, a company affiliated with cryptocurrency exchange Kraken. This innovative approach allows participants to bypass traditional brokerage hurdles and access IPO allocations typically reserved for institutional clients.
Under this system, customers of Kraken and selected members of the xStocks Alliance can express non-binding interest in upcoming US-listed IPOs before the companies go public. Payward Services aggregates demand from participating exchanges and collaborates with underwriting syndicates to finalize share allocations on the actual day of the IPO. These shares are then issued as tokens, each backed 1:1 by underlying stock held in custody by a regulated entity, ensuring direct exposure to newly listed companies.
The tokenized shares are distributed via partner exchanges, providing investors with a seamless way to hold and trade IPO shares without setting up conventional brokerage accounts. This development is part of a broader trend to use blockchain technology to widen access to traditional financial products and expand real-world asset (RWA) tokenization.
The launch is expected imminently for customers of Kraken and other xStocks Alliance members, with plans to onboard additional partners and broaden market access over time. Mark Greenberg, head of Payward Services, emphasized that this program breaks down longstanding barriers that have limited IPO participation to wealthy or geographically privileged investors, enabling individuals worldwide—from Medellín to Madrid to Malaysia—to buy into US IPOs under equitable conditions.
The move reflects growing momentum in tokenized RWAs, with market research indicating this segment has surged significantly in recent years. Payward’s xStocks infrastructure has reportedly processed over $30 billion in transactions within its first year, including more than $6 billion settled onchain across a global holder base exceeding 125,000 users. Kraken strengthened its position in this space by acquiring Backed Finance, the operator of xStocks, late last year.