- Kraken has launched trading of regulated tokenized equity perpetual futures for eligible non-US clients.
- The products, built using the xStocks framework, offer 24/7 leveraged exposure to major US stocks, indexes, and commodities.
- The move is part of a wider trend of crypto exchanges, including Gemini and Coinbase, expanding into traditional finance products.
Leading crypto exchange Kraken announced on Tuesday that it has launched regulated tokenized equity perpetual futures, a global first for a derivatives venue that allows eligible non-US clients to trade leveraged exposure to traditional assets around the clock. The contracts reference tokenized versions of major US stock indexes, Gold, and individual companies such as NVIDIA, Apple, and Tesla, according to the company’s announcement. Consequently, this innovation builds on the fast-growing market for blockchain-based instruments that mirror traditional shares.
The products are structured as perpetual futures with no expiry and are built using the xStocks framework, which issues blockchain representations of stocks and ETFs. Kraken described the contracts as referencing tokenized equity benchmarks rather than holding the underlying shares directly. Consequently, by wrapping these instruments in perpetual futures, the exchange adds significant leverage and round-the-clock liquidity to equity exposure.
The contracts support leverage of up to 20x and are available in over 110 countries, though they are not offered to US clients. Meanwhile, Kraken stated that additional tokenized stock and ETF contracts may be added in the coming months, pending regulatory approval. This development follows the exchange’s agreement to acquire Backed Finance AG, the issuer of xStocks, in December.
Kraken’s expansion reflects a broader push by major US-founded crypto exchanges to move beyond digital assets. For instance, in May, Kraken completed its roughly $1.5 billion acquisition of futures platform NinjaTrader to access traditional derivatives markets. Furthermore, in September, it launched Backed’s xStocks for eligible investors in Europe.
Other exchanges are making similar moves, as evidenced by a month. American crypto exchange Gemini expanded its tokenized equities lineup for EU users in July to include companies like Broadcom. Similarly, 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 in the same app.
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