One thing, however, hasn’t kept pace with how markets have evolved: traditional equities don’t offer accessible ways to earn rewards simply by holding them. Outside of dividends payments, which are limited to certain stocks and ETFs, most equities generally sit idle in brokerage accounts, even as the broader financial system becomes more programmable and dynamic.
That’s where Opt-In Rewards on Kraken come in
We’re today introducing Opt-In Rewards for eligible xStocks holders, allowing Kraken customers in supported countries to earn up to 1% rewards on the xStocks they already hold on the platform, while continuing to retain the exposure to the underlying equities.
Opt-In Rewards are available to Kraken customers in over 100 eligible jurisdictions across the world, reflecting the global nature of the rapidly evolving xStocks ecosystem.
Why Offer Opt-In Rewards for xStocks?
In traditional markets, most equities don’t generate rewards or earn opportunities. You buy a stock, hold it in your account, and sell it back to the brokerage you purchased it from. Any value comes from market price appreciation, or dividends declared by the underlying company. Outside of those mechanisms, ownership is a passive experience.
We see an opportunity to change this dynamic for our customers. Our approach with Opt-In Rewards is simple: if you choose to hold your xStocks on Kraken and support the growth and proliferation of the xStocks ecosystem, you should be rewarded for doing so. Opt-In Rewards are designed to do exactly that, without altering your exposure to the underlying equities.
“If financial assets are going to live onchain, they shouldn’t behave like they’re stuck in the last century”, said Mark Greenberg, Kraken’s Global Head of Consumer. “Opt-In Rewards apply crypto-native mechanics to tokenized equities, helping create more dynamic, investor-aligned markets and accelerate the adoption of what we believe should be the gold standard for tokenized stocks and ETFs.”
How Opt-In Rewards Work
If you’re based in an eligible jurisdiction (see full eligibility here), hold xStocks in your Kraken account, and choose to opt in, you:
Earn up to 1% rewards on the xStocks held in your Kraken account
Receive rewards paid in the same xStock you hold, so your position steadily grows over time
Continue to maintain price exposure to the underlying stock or ETF
In practical terms, today your xStocks sit in your Kraken account without generating any additional rewards. With Opt-In Rewards, Kraken rewards you on a weekly basis for holding those xStocks on the platform. Your xStocks continue to be 1:1 backed by the underlying equities, and are available to be traded or withdrawn off the Kraken platform seamlessly.
Why this matters for the xStocks ecosystem
Opt-In Rewards aren’t just about individual benefits. They play an important role in helping the xStocks ecosystem to grow.
By encouraging users to hold xStocks on the platform, Opt-In Rewards helps deepen liquidity across the ecosystem. Greater liquidity supports more efficient trading and better market quality. It also creates a stronger foundation for us to build future products and use cases on top of the xStocks framework.
In short, rewarding participation helps the ecosystem scale in a way that benefits holders, traders, and the broader ecosystem alike.
Over the coming months we plan to enable more Kraken customers across the world to participate in the xStocks Opt-In Rewards program.
Opt-in Rewards on xStocks are offered to eligible Kraken customers via Payward Digital Solutions Ltd. (“PDSL”), a company licensed to conduct digital asset business by the Bermuda Monetary Authority. Neither this product nor xStocks are or will be registered with any other local securities regulators. Not available in the US and other geographic restrictions apply. Reward rates are subject to change. Participation in the Opt-In Rewards Program involves an element of risk and may not be suitable for everyone. For the full terms and conditions, please refer to Kraken’s Terms of Service.
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