Bitcoin

Kraken to offer tokenized US stocks to non-US clients

Crypto Exchange Kraken plans to offer non -American customers the possibility of negotiating American actions in token, part of the company’s thrust to offer more traditional assets via the token.

The products will be offered through Backed, a new Kraken partner, according to a shared press release with Cointtelegraph. Holves representing the actions will be stored on Solana’s blockchain because of its “unrivaled performance, its low latency and its prosperous world ecosystem”, according to the press release.

“The interest of the crypto is that we are able to see things in a very transparent manner,” said Kraken Co-PDG, Arjun Sethi, during the accelerated Solana event on May 22. “It’s decentralized. It is an open source.

The decision to incorporate more traditional investment options can indicate a change of kraken to compete less with crypto-native exchanges like Coinbase and more with larger brokerage houses like Robinhood, which offer a wide range of investment options.

Kraken, stocks, Rwa tokenization
Arjun Sethi on the screen at the accelerated event of Solana in New York. Source: Cointelegraph

On April 14, Kraken opened access to negotiated funds on the stock market and stocks to American customers based in New Jersey, Connecticut, Wyoming, Oklahoma, Idaho, Iowa, Rhode Island, Kentucky, Alabama and the District of Columbia.

In 2021, Cryptocurrency Exchange Binance launched a similar initiative, but finally canceled it due to regulatory problems in various countries of the world.

According to Sethi, Kraken builds “a set of microservices” to extend his products to customers.

In relation: Crypto Exchange Kraken exploring an increase of $ 1 billion before the IPO: Report

Moving the Kraken tokenization

The tokenization of real assets (RWA) has been a central crypto subject in recent months. The market capitalization of the sector increased from $ 15.9 billion on 3 to 22.7 billion dollars on May 20, which represents a jump of 42.8% during the period.

Tokenized private credit and the US treasures are dominant assets on the market, while shares represent only $ 373.4 million.

Robinhood also moves to offer token actions. According to a recent announcement, the brokerage house works on a blockchain for tokenized titles that will offer an exhibition to European investors to the companies listed in the United States.

The Rwa tokenization is gaining ground among brokerage houses, exchanges and businesses due to several key advantages. It reduces initial costs by minimizing dependence on traditional financial infrastructure. In addition, tokenization helps to democratize access to investment opportunities, allowing retail investors to participate in markets that were previously limited to accredited investors.

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