Cryptocurrency exchange Kraken has expanded its services by offering EU customers the ability to trade tokenized stocks.
What are Tokenized Stocks?
Tokenized stocks are digital assets that represent ownership in a company as digital tokens on a blockchain. The service provides access to over 60 tokenized stocks, including Apple Inc., Meta Platforms Inc., and GameStop Corp.
Advantages of Tokenized Stocks
Tokenized stocks can be traded at any time, not just during regular market hours. They can also be used as collateral on various blockchain platforms, enhancing trading liquidity and allowing ownership of small fractions of shares.
Current Situation in the Tokenized Stock Market
The overall market for tokenized shares remains relatively limited. According to liquidity data, the total value of these assets stands at approximately $461.24 million. Most tokenized shares have been created by external issuers rather than the companies they represent.
Kraken's offering enhances access to the tokenized stock market for EU clients, making it easier for investors to participate.
