Kraken is pushing deeper into tokenization, holding private talks with the U.S. Securities and Exchange Commission (SEC) about how blockchain-based trading systems might fit into traditional finance.
The meeting, disclosed in a regulatory memo, underscores how quickly the idea of tokenized stocks has gone from niche experiment to regulatory flashpoint.
Why the SEC Cares
Tokenized equities allow investors to trade shares around the clock, sidestepping the restrictions of conventional exchanges. Advocates argue this could open markets globally, but critics warn that the same flexibility also strips away investor safeguards. Industry associations have recently urged U.S. regulators to take a harder line, worried the products resemble unregulated securities more than stocks.
Kraken’s Bet on 24/7 Equities
Kraken rolled out tokenized stocks in May, initially for non-U.S. users, before expanding the service to run on the Tron blockchain this week. Robinhood followed with a similar launch in Europe, signaling that competition is already building. At just $360 million in circulation, tokenized stocks represent a fraction of the $26.5 billion in tokenized real-world assets, yet exchanges are betting the sector could eventually scale into the trillions.
A Market With Untapped Scale
Binance researchers estimate that if even 1% of the global equities market migrated onchain, tokenized stocks could surpass $1.3 trillion. Kraken’s own survey suggests investors are receptive: 65% of respondents who own both crypto and equities expect digital assets to outperform traditional stocks over the next decade.
More Than a Copy of Wall Street
Kraken executives argue that tokenization isn’t just about replicating Wall Street on a blockchain. Mark Greenberg, who heads the exchange’s consumer division, has said the technology could unlock new features like programmability and global reach, creating opportunities beyond what traditional equity markets can offer.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/kraken-meets-sec-to-discuss-tokenized-stock-trading-systems/