Kraken-related tokenized stocks platform xStocks plans to launch a rewards program for traders, liquidity providers and DeFi builders using its on-chain stock tokens.
The initiative dubbed xPoints will track activity across supported trading platforms and integrations. Participants can earn points by trading tokenized US stocks providing liquidity or using the assets in decentralized finance (DeFi) applications.
Points programs have become a common strategy in crypto to drive early usage of new platforms. In many cases, projects then convert the accumulated points into governance tokens or other ecosystem rewards. Although xStocks has not yet announced a token, the initiative could pave the way for an eventual token launch.
xStocks said the points program aims to align contributors long-term with the growth of its ecosystem. Participants who accumulate points may have access to future platform-related benefits after completing the program, although details have not been disclosed.
The move comes as tokenized stocks have become one of the fastest growing sectors in crypto. The category now holds more than $1 billion in value locked, tripling its size over the past six months, according to data from RWA.xyz.
xStocks said its tokenized stock offering has processed more than $25 billion in trading volume in the eight months since its launch and has expanded across multiple blockchain networks.
Traditional financial companies have also shown interest in tokenized stocks. Earlier this week, Nasdaq announced plans to work with Kraken to distribute tokenized versions of public stocks to investors outside the United States, as part of a broader initiative by the exchange operator to introduce blockchain infrastructure to the capital markets.
Read more: Tokenization is still early in the hype cycle, but needs more use cases, experts say
