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.
The launch marks one of the latest efforts to use blockchain infrastructure to broaden access to traditional financial products amid a global push for real-world asset (RWA) tokenization.
Bringing IPO allocations onchain
Under the proposed process, participating exchanges will open an indication-of-interest window in
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