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- Kraken lets international users trade tokenized stocks of top companies like Tesla and Nvidia.
- 24/7 tokenized stock trading gives global investors an advantage beyond U.S. market hours.
- Regulators are increasingly focused on ensuring compliance as tokenized assets reshape finance.
Kraken, a top U.S. cryptocurrency exchange, is getting ready to introduce a service where international users can trade tokenized shares of more than 50 large stocks and ETFs. A list of these companies includes Apple, Tesla and Nvidia. The app will be available across Europe, Latin America, Africa, and Asia, except in the U.S.
xStocks are the name given to the digital tokens that operate on the Solana blockchain. Backed Finance will securely hold all stocks and ETFs, so every token issued represents an actual part of the asset. Although individuals do not have the actual shares, they still have the option to redeem the tokens in cash. Consequently, the value of the tokens matches that of the real assets.
24/7 Tokenized Stock Trading
A key benefit of Kraken’s updated feature is that traders can buy and sell tokenized stocks at any time. Usually, stock markets have fixed opening and closing hours, but users on Kraken can purchase and sell tokens anytime, even when U.S. markets are shut. Therefore, international investors have an edge, as opening hours are not limited by time zones.
Sethi, the co-CEO of Kraken, said that buying U.S. shares outside of the United States can take time and cost more than investing within the country. By creating tokenized stocks, Kraken hopes to eliminate those obstacles and allow international users to invest in the U.S. markets more cheaply and easily. The goal is to allow more investors around the world to easily purchase U.S. stocks.
Tokenizing assets is becoming a bigger trend in the world of financial services. BlackRock, JPMorgan and Citi have lately started using tokens to handle Treasury bonds and equities. In the year 2024, BlackRock launched a liquidity fund on Ethereum, quickly gaining a major portion of the market for tokenized Treasuries. It is expected that by 2025, 80% of institutional investors will take part in tokenized assets.
Kraken Ensures Regulatory Compliance
Kraken is partnering with regulators to make sure it complies with laws in every region. Paying close attention is necessary since Binance faced difficulty launching a tokenization project last year because of regulatory problems. The platform avoids these errors by complying with the regulations of every country it serves.
Kraken is working on making the platform even easier for users to use. Later, users may be able to transfer their tokenized stocks into their own crypto wallets and use them for leverage in crypto trading. This new service by Kraken opens up U.S. stock investing to investors all over the world.
