Kraken, a cryptocurrency exchange, has announced the rollout of tokenized stocks in Europe, expanding its services from the May launch.
What are Tokenized Stocks?
Tokenized stocks are assets that mirror the prices of real shares but trade entirely on-chain. These tokens are backed by third-party issuers, allowing investors to move them within the crypto ecosystem.
Kraken's Market Strategy
Kraken's Co-CEO Arjun Sethi framed the move as a push to align ownership with value, criticizing traditional markets for allowing institutions to capture benefits like staking or lending instead of passing them on to shareholders.
Comparison with Other Platforms
While the tokenized stock market is still relatively small, competition is heating up. Robinhood introduced its European offering, controversially including private companies like OpenAI. In contrast, Kraken has focused exclusively on established public companies.
The launch of tokenized stocks in Europe marks a new milestone for Kraken, paving the way for expanded use in decentralized finance and providing around-the-clock equity exposure.
