Kraken Launches Tokenized Stock Perpetual Futures

Kraken Launches Tokenized Stock Trading on Regulated Platforms

Kraken crypto exchange has launched tokenized stock perpetual futures trading on regulated derivatives platforms. Eligible non-US customers can gain 24/7 leveraged access to major US stock indices, gold, and individual companies like Nvidia, Apple, and Tesla. Contracts are structured as perpetual futures without expiration dates, referencing blockchain-based stock representations via the xStocks framework and do not hold actual shares. This enables trading even when traditional markets are closed, bringing the flexibility of crypto derivatives to stocks.

Product Features: 20x Leverage and Access in 110+ Countries

The products are available in over 110 countries and offer up to 20x leverage. Perpetual futures are kept close to the spot price via a funding rate mechanism, similar to the structure used in popular crypto contracts like BTC futures. Kraken describes these as the first regulated tokenized equity perpetual futures. While high leverage amplifies opportunities, it also increases risks; investors should be mindful of margin calls. Additional contracts are planned for the coming months.

xStocks Acquisition and Kraken's Strategic Moves

Kraken reached an agreement to acquire xStocks issuer Backed Finance AG in December. xStocks achieved a cumulative trading volume of 25 billion dollars eight months after launch. This development aligns with Kraken's acquisition of NinjaTrader and its tokenized equities launch in Europe. The company is thus bridging traditional finance with crypto, building an integrated ecosystem with tools like BTC detailed analysis.

Competitors and Tokenized Stock Trend

Similarly, Gemini has offered tokenized stocks, while Coinbase launched commission-free stock and ETF trading for US users. These moves signal that tokenized assets will become standard on crypto exchanges. Kraken's regulated approach could boost investor confidence.