Kraken-linked tokenized stock platform xStocks plans to launch a rewards program targeting traders, liquidity providers, and DeFi builders using its on-chain stock tokens.
The initiative called xPoints will track activity in supported shopping centers and integrations. Participants can earn points by trading tokenized US stocks that provide liquidity or by using the assets in decentralized finance (DeFi) applications.
Points programs have become a common strategy in crypto to drive early use of new platforms. In many cases, projects subsequently convert the accumulated points into governance tokens or other ecosystem rewards. While xStocks has yet to announce a token, the initiative could pave the way for a possible token launch.
xStocks said the points program is intended to align long-term contributors with the growth of its ecosystem. Participants who accumulate points will be able to access future benefits linked to the platform once the program concludes, although no details have been revealed.
The move comes as tokenized stocks have become one of the fastest growing crypto sectors. The category now has more than $1 billion in locked value, tripling in size in the past six months, data from RWA.xyz shows.
xStocks said its tokenized stock offering has processed more than $25 billion in transaction volume in the eight months since its launch and has expanded to multiple blockchain networks.
Traditional financial companies have also shown interest in tokenized stocks. Earlier this week, Nasdaq said it plans to work with Kraken to distribute tokenized versions of public stocks to investors outside the US, as part of a broader push by the exchange operator to bring blockchain infrastructure to capital markets.
Read more: Tokenization is still early in the hype cycle, but needs more use cases, experts say
