Ledger and Payward, the parent company of Kraken, have partnered to bring hardware-based self-custody to tokenized stocks through Payward’s xStocks platform. The companies announced the partnership on Sept. 24, positioning the move as a bridge between traditional financial markets and crypto-style asset custody.
The integration will allow eligible users to interact with xStocks through Ledger devices while retaining control of their private keys. Payward said xStocks have surpassed $42 billion in total transaction volume.
Hardware-Based Security
The partnership adds several layers of integration between the two companies:
- Kraken customers can use a Ledger device to sign supported transactions.
- Ledger users will gain deeper access to xStocks through Ledger Wallet.
- Payward Services will provide buying, selling and swapping services inside Ledger Wallet.
- Ledger Enterprise customers could eventually access Payward’s trading, custody and funding infrastructure.
The transaction-signing feature is central to the security model. Users can confirm transactions directly on a Ledger device rather than relying solely on an online account.
xStocks Expand Self-Custody
xStocks represent tokenized exposure to stocks and exchange-traded funds. Kraken says the tokens are backed 1:1 by underlying equities held through regulated custody arrangements. However, xStocks do not provide shareholder rights such as voting rights or direct cash dividends.
The Ledger integration extends an existing trend toward self-custody for tokenized equities. Kraken already allows eligible customers to withdraw xStocks to compatible self-hosted wallets, where the tokens can operate on supported blockchain networks.
The products remain subject to geographic restrictions. Kraken currently states that xStocks are unavailable to U.S. customers and certain other jurisdictions.
The partnership reflects a broader push to make tokenized financial assets function more like native digital assets. For investors who prefer controlling their own keys, hardware wallets could provide another custody option as tokenized equities expand beyond exchange-based trading.
