Crypto exchange Kraken has launched trading of tokenized equity perpetual futures on its regulated derivatives platforms, allowing eligible non-US clients to trade 24/7 leveraged exposure to major US stock indexes, gold and individual companies including Nvidia, Apple and Tesla.
According to Tuesday’s announcement, the contracts are structured as perpetual futures, derivatives that trade without expiry, and are offered to eligible clients outside the United States. Kraken described the products as the first regulated tokenized equity perpetual futures to be listed on a derivatives venue.
The products are built using the xStocks framework, which issues blockchain-based representations of publicly traded stocks and exchange-traded funds. Kraken said the contracts reference tokenized equity benchmarks rather than directly holding the underlying shares.
The move builds on the fast-growing market for tokenized equities, which use blockchain-based instruments to mirror traditional shares and enable extended trading hours beyond those of legacy exchanges. By wrapping those instruments in perpetual futures, Kraken is adding leverage and round-the-clock liquidity to equity exposure.
The contracts are available in more than 110 countries and support leverage of up to 20x. Kraken said additional tokenized stock and ETF contracts may be added in the coming months, subject to regulatory approval.
Clearing and execution are handled through Kraken’s derivatives platform, and the products are not available to US clients, according to the company.
The news follows Kraken’s agreement to acquire Backed Finance AG, the issuer of xStocks, in December. On Thursday, Kraken said xStocks had surpassed $25 billion in cumulative transaction volume less than eight months after launch.
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Crypto exchanges expand into equities and traditional derivatives
The move by Kraken reflects a broader push by major US-founded crypto exchanges to expand beyond digital assets and offer exposure to traditional financial markets.
In May, Kraken completed its roughly $1.5 billion acquisition of futures platform NinjaTrader, a registered Futures Commission Merchant with the Commodity Futures Trading Commission, expanding its access to traditional derivatives markets.
Four months later, the company expanded into tokenized equities in Europe, in September launching Backed’s xStocks, blockchain-based versions of publicly traded shares, for eligible investors in the region.
Kraken is not alone in expanding into tokenized equities. In June, Gemini, the American crypto exchange founded by the Winklevoss brothers, launched a tokenized version of Strategy shares for users in the European Union.
The following month, it expanded its tokenized equities lineup to include US-listed companies including BlackRock, Visa, American Express, Sony, Broadcom, Prologis and Caterpillar.
On Tuesday, Coinbase, the largest US-based crypto exchange by spot trading volume, rolled out commission-free stock and ETF trading to US users, allowing customers to buy equities alongside digital assets within the same app. The launch was framed as part of the exchange’s plan to become an “everything app.”
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Source: https://cointelegraph.com/news/kraken-launches-regulated-tokenized-equity-perpetual-futures-for-global-traders?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
