365Crypto
Kraken is launching tokenized US stocks for customers outside the US. This move lets non-US users trade shares as digital tokens. Kraken teamed up with Backed, and these tokens will live on the Solana blockchain. (even though Ethereum would have been a much better and more stable choice)
Solana was chosen for its fast speed, low delay, and strong global network. Kraken’s co-CEO Arjun Sethi said at a recent event that crypto is all about transparency and quick innovation. This new offer blends traditional investing with crypto.
Kraken’s shift shows it wants to compete not only with crypto exchanges but also big brokers like Robinhood. Recently, Kraken allowed some US states to trade stocks and ETFs directly.
In 2021, Binance tried something similar but stopped because of regulatory troubles. Kraken is now building “microservices” to scale their products for more users.
Tokenizing real-world assets like stocks is growing fast. The market jumped from $15.9 billion in January to $22.7 billion in May. Stocks make up a smaller slice of this market. Robinhood also plans to launch tokenized stock trading for European clients soon.
Tokenization cuts costs by avoiding traditional finance layers. It also lets small investors join markets usually reserved for big players.
Footnote: Tokenization means turning real assets like stocks into digital tokens on a blockchain, making them easier to trade worldwide.
