UK Investors Left Out as Fundrise and Kraken Launch Onchain VCX Fund for Global Access
Updated: Oct 11
The tokenisation of venture capital funds is reshaping how investors access private markets. Recently, Fundrise and Kraken’s xStocks platform introduced an onchain version of the Fundrise Innovation Fund (NYSE: VCX), enabling global investors to trade a token representing shares in this venture capital vehicle. This development marks a significant milestone in the integration of traditional finance and blockchain technology. Yet, UK investors remain unable to participate in this opportunity, highlighting regulatory and market access challenges in the UK.
What Has Been Announced?
On 27 March 2026, Fundrise, a leading US alternative investment platform, announced a partnership with Kraken’s tokenised equities platform xStocks to launch VCXx, which was expected to go live on xStocks in the coming days. This token represents the Fundrise Innovation Fund, a publicly traded, closed-end venture capital fund listed on the New York Stock Exchange earlier that year. VCX holds a diversified portfolio of late-stage private technology companies, including SpaceX, OpenAI, Anthropic, and Databricks.
VCX itself is not a cryptocurrency product. It is a traditional financial instrument with over $650 million in assets under management and more than 100,000 individual investors. Around the time of its NYSE listing, Crowdfund Insider reported a one-year return of 63.27% for the fund. What xStocks has done is create a blockchain-based token fully backed by VCX shares. This token, VCXx, is issued by Backed Assets (JE) Limited and offered through Payward Digital Solutions, Kraken’s Bermuda-licensed entity.
This tokenisation allows eligible investors outside the United States to gain onchain exposure to the fund’s portfolio through a single tradeable token, simplifying access to high-growth private companies.
Why This Deal Matters for the Future of Tokenised Venture Funds
This development is important for several reasons:
Bridging Traditional and Digital Finance
xStocks and Fundrise described VCXx as one of the first times investors across the world can access diversified private company exposure onchain. This bridges traditional stock markets and blockchain technology, offering investors the benefits of both worlds.
Access to Private Market Growth
Private technology companies like SpaceX and OpenAI have historically been difficult for retail investors to access. VCXx provides a new route to invest in these companies indirectly, with the liquidity and transparency of blockchain tokens.
Global Reach with Restrictions
While the token opens access to investors worldwide, Kraken lists the UK among excluded jurisdictions. This exclusion raises questions about the UK’s stance on tokenised securities and the challenges it faces in adopting new financial technologies.
The UK’s Position in Tokenised Securities
The UK has been slower than some other markets to embrace tokenised equities. Regulatory uncertainty and investor protection concerns have led to restrictions on the sale of such products to UK residents. This cautious approach contrasts with jurisdictions like Bermuda, where Kraken’s Payward Digital Solutions operates under a licence that supports tokenised securities.
For UK investors, this means missing out on innovative investment vehicles like VCXx, which offer exposure to high-growth private companies through a regulated, transparent, and liquid token. The UK’s current regulatory framework limits the ability of platforms to offer these products domestically, keeping UK investors on the sidelines.
What This Means for Founders and Investors
For founders of private companies, tokenisation of venture funds can increase capital access and liquidity options. It also broadens the investor base beyond traditional venture capital firms to include global retail investors.
Investors gain a new way to diversify portfolios with exposure to private tech companies without the usual barriers of high minimum investments or complex private placements. The onchain nature of VCXx also offers benefits such as faster settlement, transparency, and potentially lower fees.
However, UK investors should be aware of the current limitations and monitor regulatory developments that may open access to tokenised securities in the future.
Looking Ahead
The launch of VCXx by Fundrise and Kraken signals a growing trend towards tokenising traditional financial assets to improve accessibility and efficiency. As regulatory frameworks evolve, more investors worldwide, including those in the UK, may gain access to these innovative investment options.
For now, UK investors should stay informed about regulatory changes and consider alternative routes to private market exposure. Founders and investors alike should watch how tokenisation reshapes venture capital and private equity markets, potentially unlocking new opportunities for growth and participation.
The tokenisation of VCX is a clear example of how blockchain technology can enhance financial markets. It offers a glimpse of a future where private market investments become more accessible, liquid, and transparent for a broader range of investors.
How we got here
Kraken launched xStocks in June 2025 as a range of tokenised equities, each fully collateralised and backed one to one by the underlying share. By the time of the VCX announcement on 27 March 2026, Kraken reported more than 100 tokenised stocks and ETFs, over 25 billion dollars in combined transaction volume and more than 100,000 unique holders worldwide.
The underlying fund has a longer history. It was first filed with the SEC in June 2021, and on 3 March 2026 Fundrise announced that VCX would list on the New York Stock Exchange on or after 9 March, with about 650 million dollars in net assets and more than 100,000 investors. Its largest holdings at 15 February 2026 were Anthropic at 21 per cent, Databricks at 18 per cent and OpenAI at 10 per cent, followed by Anduril, Ramp, SpaceX and Epic Games.
What it means for UK founders and investors
Kraken's own support pages list the UK alongside the United States, Australia and Canada as places where xStocks are not available, without giving a reason. The tokens are issued by Backed Assets (JE) Limited, a Jersey company, and offered through Payward Digital Solutions Ltd, which holds a digital asset business licence from the Bermuda Monetary Authority. A UK investor who wants exposure to late stage private companies today has to use domestic routes, such as listed investment trusts or Venture Capital Trusts, each with its own rules and costs.
For UK founders, the more practical point is concentration. Almost half of VCX sat in three companies in February 2026. Tokenised wrappers of listed funds widen access to a short list of late stage names; they do not move money towards early stage companies. Founders looking for retail and angel capital will still find it through SEIS and EIS rounds, FCA authorised crowdfunding platforms and, in time, PISCES trading events. Founders may want to take professional advice on which route fits their stage.
Key facts at a glance
27 March 2026: xStocks and Fundrise announce VCXx, a tokenised version of VCX.
VCX was first filed with the SEC in June 2021 and listed on the NYSE in March 2026.
Net assets of about 650 million dollars and more than 100,000 investors at listing.
Issuer: Backed Assets (JE) Limited. Offered by Payward Digital Solutions Ltd, licensed by the Bermuda Monetary Authority.
xStocks are not available in the United States, the UK, Canada or Australia.
Sources
Frequently asked questions
What is VCXx?
VCXx is a blockchain-based token fully backed by shares of the Fundrise Innovation Fund (NYSE: VCX). It was announced on 27 March 2026 by Fundrise and Kraken's tokenised equities platform xStocks, with the token expected to go live in the following days, and is issued by Backed Assets (JE) Limited and offered through Payward Digital Solutions, Kraken's Bermuda-licensed entity.
What does the Fundrise Innovation Fund (VCX) invest in?
VCX is a publicly traded, closed-end venture capital fund listed on the New York Stock Exchange. It holds a portfolio of late-stage private technology companies including SpaceX, OpenAI, Anthropic and Databricks, with over $650 million in assets under management and more than 100,000 individual investors.
Can UK investors buy the VCXx token on Kraken xStocks?
No. VCXx is offered to eligible investors outside the United States, but Kraken lists the UK among excluded jurisdictions for xStocks, without giving a reason.
Disclaimer:
This article is provided for general information only and does not constitute legal, financial, or investment advice. The regulatory treatment of tokenised assets and digital securities varies by jurisdiction and continues to evolve. Readers should seek independent professional advice before making any financial, legal, or regulatory decisions.
Comments