Kraken Adds SpaceX IPO Access Through Tokenized xStocks Platform

Crypto exchange Kraken is giving customers access to the upcoming SpaceX initial public offering through xStocks, a tokenized equities platform — because nothing says "decentralized finance" quite like a front-row seat to the most centralized rocket company on Earth. Kraken announced Friday that SpaceX will be the first public offering available through xStocks IPO Access, which allows eligible users to participate in the offering through tokenized equity instruments. To participate, users must have a verified Kraken account on the Kraken mobile app and submit an application for IPO access. The offering is not available through Kraken Pro or the company's desktop platform, presumably because rockets deserve their own dedicated app.

According to Kraken, IPO Access is available across the European Economic Area (EEA) and more than 110 international markets, though participation is restricted in the United States, Canada, Australia and the United Kingdom due to regulatory limitations. The list of excluded jurisdictions is, fittingly, almost identical to the group chat where regulators compare notes.

Eligible users can register interest in purchasing SpaceX shares before the company begins public trading. Investors who receive an allocation will be issued SPCXx, a tokenized representation of SpaceX equity backed 1:1 by the underlying shares. The tokens can be traded 24/7 on Kraken and other participating xStocks platforms, meaning SpaceX exposure is now available at hours Elon Musk himself rarely keeps.

SpaceX is expected to begin trading publicly on June 12, giving investors their first opportunity to own shares in Elon Musk's rocket and satellite company. According to Bloomberg, demand for the offering has already exceeded the number of shares available, with SpaceX seeking to raise roughly $75 billion at a valuation of at least $1.8 trillion. If achieved, the listing would be the largest IPO ever, exceeding Saudi Aramco's $29.4 billion deal in 2019, Bloomberg said.

The company's growth story is largely tied to Starlink, its satellite internet business, which has become a major source of revenue and profitability. However, SpaceX's capital-intensive launch and space exploration operations continue to incur high costs, raising questions about how investors will value the company once it begins trading on the public market. Standard IPO hand-wringing, just with a higher altitude.