Quick Breakdown
- Regulatory Talks: Kraken and the SEC discussed tokenized trading rules, investor safeguards, and market integration.
- Industry Expansion: Kraken and Robinhood are leading tokenized stock adoption, with Kraken expanding offerings to Tron.
- Growth Potential: Tokenized stocks remain small at $360M but could surpass $1.3T if 1% of global equities move on-chain.
Kraken Meets SEC Task Force
Cryptocurrency exchange Kraken held a meeting with the U.S. Securities and Exchange Commission’s (SEC) Crypto Task Force on Monday to address the future of tokenized assets and the infrastructure required for a tokenized trading system.
According to a memorandum filed the same day, SEC officials met with four representatives from Payward, Inc. and Kraken Securities LLC, alongside two lawyers from Wilmer Cutler Pickering Hale and Dorr LLP. Discussions centred on regulatory requirements, investor protections, and the broader benefits of tokenization in traditional finance.
Tokenized Stocks on the Rise
Kraken first unveiled its tokenized stocks service on May 22, allowing non-U.S. investors to trade U.S. equities around the clock. Rival platform Robinhood followed on June 30, launching tokenization-focused layer-2 blockchain and introducing stock token trading for users in the European Union.
This week, Kraken announced the expansion of its tokenized stock products to the Tron blockchain, signaling its push to diversify offerings in the sector. Unlike traditional equities, tokenized stocks trade 24/7 and are not bound by traditional market restrictions.
Market Still in Early Stages
Despite growing institutional and retail interest, tokenized stocks remain at an early stage. Data from RWA.xyz shows their total circulation value stands at $360 million, marking an 11% drop in the last 30 days. This accounts for only 1.35% of the $26.5 billion worth of tokenized Real World Assets (RWAs) currently on-chain.
Still, long-term projections remain bullish. Binance Research estimates that if just 1% of the global equities market transitions to blockchain, the sector could exceed $1.3 trillion in market capitalization.
A Kraken survey conducted last week further highlights investor optimism—65% of 1,000 U.S. investors who hold both equities and crypto believe crypto will outperform stocks over the next decade.
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