Kraken Announces Tokenized Trading Service for U.S. Stocks and ETFs on Solana Blockchain
The cryptocurrency exchange Kraken announced today at Solana Accelerate that it will collaborate with tokenized asset company Backed to launch tokenized trading services for over 50 U.S. stocks and ETFs on the Solana blockchain. This move not only signifies a major shift for Kraken into the tokenization space but also positions it to compete directly with mainstream brokerages like Robinhood.
Kraken Joins the New Frontline of Securities Tokenization, Targeting Non-U.S. Markets
Today, Kraken officially entered the tokenization market, following its acquisition of U.S. futures platform NinjaTrader for $1.5 billion in March. It has now announced the launch of a tokenized securities trading platform called “xStocks” on Solana, expected to go live in the coming weeks.
Today we’re announcing our new partnership with @BackedFi for the launch of xStocks on @Solana @xStocksFi will offer tokenized versions of U.S.-listed equities, available soon to eligible Kraken clients in select non-U.S. markets. A new layer of market access, built on…
The announcement states that the service, provided by partner Backed, will allow non-U.S. users to trade over 55 tokenized stocks and ETFs on xStocks, including popular assets like Apple, Tesla, and Nvidia, thereby creating lower-barrier cross-border financial options for global investors. Last month, Kraken also announced the addition of U.S. stocks, focusing on seamless reinvestment, fractional trading, and a simplified user experience, paving the way for future IPOs.
Kraken Optimistic About Tokenization Market
Sethi: Market for Equity Tokens Will Surpass Stablecoins
Arjun Sethi, co-CEO of Kraken, stated at the Solana Accelerate event that the market size for equity tokens will “far exceed” that of stablecoins, even predicting that the market capitalization of individual stock tokens could rival that of Tether. “Right now, it’s one stock, but in the future, it could be 500 or 1,000. The growth rate in this market will be beyond imagination,” he added. He further noted, “If we consider the potential introduction of futures and options as derivatives, the overall tokenization market’s potential will see exponential growth.”
Non-U.S. Investors Finally Able to Access U.S. Stocks Easily
Sethi also pointed out that many users from non-U.S. regions, especially in the UK and Europe, have long struggled to access the U.S. stock market: “You want to invest, but the cumbersome process can be overwhelming, leading you to ultimately give up.” This has become one of the core reasons for Kraken’s launch of tokenized stocks.
RWA Boom Sweeps the Industry, Robinhood Joins the Fray
Kraken is not the only player entering the tokenized assets and RWA space; the market capitalization has surged from $15.9 billion at the beginning of the year to $22.7 billion, representing a growth rate of 43%. While the current focus is on U.S. Treasuries and private debt, stock tokens only account for $370 million, indicating significant growth potential.
Brokerage platform Robinhood has recently announced that it is developing a dedicated blockchain to allow European users to trade tokenized U.S. stocks, signaling that mainstream brokerages are also scrambling to enter this new blue ocean.
New Capital Market: Kraken’s Next Steps in Preparing for IPO
This move comes as Kraken considers raising $1 billion in funding in preparation for a future IPO. The addition of tokenized stocks not only broadens its revenue sources but also aligns its product line more closely with the traditional financial world. As crypto technology gradually rewrites the rules of capital markets, Kraken’s strategic transformation may well be a preview of the future landscape of finance.
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