Kraken held a meeting with the U.S. Securities and Exchange Commission (SEC), focusing on issues related to asset tokenization and trading systems for tokenized securities.
Key Discussion Topics
During the meeting held on Monday, legal requirements for asset tokenization, the structure of a platform for trading tokenized securities, and the potential benefits of such systems for both investors and markets were discussed.
Potential of Tokenized Stocks
Tokenized stocks, unlike their traditional counterparts, can trade 24/7 across different blockchains, creating both opportunities and risks. Kraken and Robinhood are among the leading platforms offering tokenized stock trading services.
Current Trends in Tokenized Stock Market
Despite growing interest, tokenized stocks are still in early stages of adoption. Currently, the total value of tokenized stocks stands at around $360 million, representing only 1.35% of the total value of tokenized assets.
Kraken's discussions with the SEC highlight the need for a balance between fostering innovation and ensuring investor protection. It also reflects the competition in a market where traditional finance and blockchain technologies seek to establish interaction.
