Kraken parent Payward brings tokenized IPO access to retail investors
Kraken and xStocks Alliance will let eligible users seek allocations in US IPOs at the offering price through tokenized shares in coming weeks.
Retail investors will soon be able to participate in US initial public offerings (IPOs) at the offering price through a new tokenized equities program from Payward Services, a Kraken-affiliated company.
In a Wednesday announcement, Payward Services said customers of Kraken and select members of its xStocks Alliance will be able to express interest in US-listed IPOs before companies go public and receive allocations of tokenized shares on listing day.
According to the company, the shares will be issued at the IPO offering price and backed 1:1 by the underlying stock held in custody by a regulated entity, allowing eligible retail investors to access allocations that are typically reserved for institutional clients.