Crypto exchange Kraken has announced the launch of tokenized stock trading for its non-US clients, as part of the company's strategy to expand its range of traditional assets.
Partnership with Backed
The tokenized products will be offered through Kraken's new partner, Backed. Tokens representing the stocks will be stored on the Solana blockchain, due to its high performance and low latency.
Importance of Tokenization
Real-world asset (RWA) tokenization has become a central topic in the crypto industry in recent months. The market capitalization of the RWA segment has grown by 42.8%, reaching $22.7 billion. Dominant assets in the market include tokenized private credit and US Treasuries.
Competition with Brokerage Platforms
According to Arjun Sethi, co-CEO of Kraken, the company aims to compete not only with crypto exchanges but also with large brokerage platforms like Robinhood. Robinhood is also exploring the possibility of launching tokenized stocks.
Kraken's expansion into the tokenized stock market may represent an important step in competing with traditional brokers and reflects the direction the crypto industry is heading.
