Kraken has taken a significant step by offering tokenized stocks and ETFs through the Solana blockchain, indicating a convergence of cryptocurrencies and traditional finance.
Tokenized Stocks on Solana
Kraken has offered over 50 tokenized stocks and ETFs, including Apple and Tesla. This move, led by Co-CEO Arjun Sethi, aims to reduce costs for international investors who face high fees and long settlement times when accessing U.S. equities.
Collaboration with Backed Finance
In partnership with Backed Finance, Kraken will provide a 1:1 backing for these tokenized assets, ensuring their prices reflect underlying market values. The initiative allows trading beyond traditional market hours and removes intermediary barriers.
Market and Regulatory Aspects
Immediate market reactions have been positive, with tokens available for 24/7 trading on Solana. This could increase blockchain usage and impact financial markets by lowering operational costs. The zero-commission structure is appealing to international investors. The project excludes U.S. investors due to regulatory constraints, targeting Europe, Africa, Asia, and Latin America.
Kraken is proactive in avoiding regulatory setbacks faced by similar projects, aligning with a broader industry trend toward tokenizing traditional assets.
