Payward has partnered with Ledger to launch xStocks within Ledger’s self-custody wallet services, aiming for a more extensive integration for users eligible to trade tokenized shares.
Summary
- Payward reports that xStocks have recorded over $42 billion in total transaction volume.
- Kraken customers will be able to authorize transactions through a Ledger device.
- Payward Services will enable the buying, selling, and swapping of crypto within the Ledger Wallet.
- xStocks are not accessible to individuals in the U.S., despite the tokens corresponding to U.S.-listed shares.
Integration of xStocks with Ledger Wallets
According to Payward’s announcement on September 24, the companies are collaborating to improve xStocks integration within Ledger Wallet, allowing eligible customers to buy, sell, and transfer tokenized equities while managing their own keys. This service aims to support hundreds of tokens linked to both U.S. and international shares.
The partnership also outlines plans for Kraken users who utilize Ledger devices. Built using Ledger’s Device Management Kit, this integration will permit users to fund and withdraw assets and sign transactions directly from their device in the Kraken interface. Ledger’s Clear Signing feature is designed to display transaction details on the device for user approval.
By storing a token in a hardware-secured wallet, the owner retains control over the keys necessary for authorizing transfers. The Ledger device introduces an extra approval step whenever the owner decides to move the asset. Payward describes the xStocks integration within Ledger Wallet as a work in progress, without a fixed timeline for the release of all planned features.
“The experiences of self-custody and exchange access should not feel like isolated ecosystems,” remarked David Ripley, co-CEO of Payward, in the announcement. He stressed that investors managing their own assets require access to trading services and market infrastructure.
Trading via Payward Services in Ledger Wallet
Beyond tokenized shares, Payward Services will offer a platform for cryptocurrency purchases, sales, and swaps directly within Ledger Wallet. The initial payment methods will encompass debit cards and bank transfers in Europe and the U.K., with additional payment options and regions under consideration for future development.
Moreover, Payward aims to link Ledger Enterprise clients, such as banks and fintech firms, with trading, custody, payment, and funding services using its exchange infrastructure. Pascal Gauthier, chairman and CEO of Ledger, noted that this partnership will benefit both individual users and institutions utilizing Ledger Enterprise.
The collaboration regarding xStocks is part of several initiatives by Payward to utilize tokenized shares. In May, Bitget Wallet incorporated 130 xStocks products for eligible users of its self-custody application. On September 14, Kraken launched three xStocks vaults, allowing eligible customers to deposit tokens associated with Nvidia shares and two U.S.-listed exchange-traded funds in exchange for various on-chain rewards. It’s important to note that simply holding an xStock in a Ledger-secured wallet does not necessarily place it in any of these strategies.
Payward announced that the total transaction volume for xStocks has surpassed $42 billion. Earlier in September, the London Stock Exchange and Payward outlined plans to introduce tokens linked to 100 major London-listed companies into the xStocks framework. Trading through the intended LSE 24 venue will depend on receiving regulatory approval.
U.S. Stock Exposure Does Not Equate to U.S. Access
While numerous xStocks track shares and funds traded on American exchanges, Payward’s product terms clearly state that xStocks are unavailable in the United States and to U.S. persons, as these tokens have not been registered under the U.S. Securities Act. The hardware support from Ledger does not modify these eligibility restrictions.
The legal standing of a token holder differs from that of a shareholder who buys stock through a broker. As previously highlighted on crypto.news, Kraken explains that xStocks holders gain exposure to the price of an underlying security but do not receive voting rights, dividend rights, or any legal claims against the company represented by the token. Payward identifies Backed Assets as the issuer of xStocks.
In an unrelated project targeting the U.S. market, Nasdaq and Payward are developing a system for Nasdaq Equity Tokens that aims to preserve the rights associated with the underlying securities. In September, Nasdaq pledged to invest $100 million in Payward as both entities advanced this initiative, with the token service launch expected in the second quarter of 2027. The Nasdaq tokens and the xStocks encompassed by the Ledger partnership differ in terms of attributed rights and timelines for rollout.
Pending U.S. Derivatives Plan by Payward
Furthermore, Payward has proposed the introduction of selected on-chain perpetual futures to eligible American customers utilizing Hyperliquid’s HIP-3 infrastructure. According to reports from September 16, its CFTC-regulated Bitnomial operations would manage, clear, and settle the markets, while NinjaTrader Clearing would oversee approved customer accounts.
Payward has noted that the proposed contracts are still pending regulatory approval. The company has not disclosed a launch date for these Hyperliquid markets.
