While traditional finance becomes more linked to blockchain technology, a Kraken leader said that the simple fact of bringing traditional financial products to a blockchain will not cut it and is not the final objective of tokenization.
Mark Greenberg, the world chief of the Kraken Consumption Commercial Unit, told Cintelegraph that token actions should go beyond the replication of Wall Street Systems Onchain. Instead, he said they should unlock new levels of accessibility, programmability and global scope.
It argued that it is an opportunity to fundamentally rethink the functioning of global markets in terms of accessibility, programmability and access to users with inherited tools.
“Tokenized actions cannot simply be” Wall Street on a blockchain “. This is missing the point, ”Greenberg told Cointelegraph. He said that actions should “feel like the internet”, which is always on, self-directed and accessible on a global scale.
Rebuild financial assets to be as fluid as crypto
Greenberg said most of the institutions inherited to what extent change could be a transformer. “It is not only a question of enveloping the old active in the new technology,” Greenberg told Cointelegraph. “It is a question of reconstructing financial access to be as fluid and programmable as the crypto.”
He added that retail users should be able to access global markets in real time, with tools formerly reserved for hedge funds. For developers, Tokenized actions offer a platform to create applications, much like stablescoins and DEFI protocols.
Asked about the role of regulations in tokenization, Greenberg told Cintelegraph that Kraken believed that the future of capital markets lies in programmable and compliant open infrastructures.
On June 30, Kraken joined Backed Finance to launch XSTOCKS, a product that allows users to exchange more than 60 token actions.
The product, allowing users to negotiate actions like Netflix, Meta and Coinbase, was put online on Kraken, Bybit and several decentralized finance protocols (DEFI) on Solana.
“With tokenized actions like Xstocks, we build basic layer systems that are without authorization and composable, while ensuring that the assets themselves adhere to erased legal frameworks,” Greenberg told Cointelegraph.
He said this approach gives users decentralization without abandoning the protections on which regulators are concentrated. “The regulations should evolve to support this balance, not delete it,” added Greenberg.
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Tokenization of stocks in Ethereum
Apart from Kraken, the trading platform Etoro plans to launch token actions. However, unlike Kraken, which uses the Solana network, the company tokenisera 100 American actions on Ethereum.
While companies rush to tokensize actions, Ethereum groups work with regulators to create industry standards for token titles.
On July 21, organizations aligned by Ethereum met the Securities and Exchange Commission to discuss ONCHAIN technology standards with traditional regulatory requirements.
https://www.youtube.com/watch?v=ry9mi57pbjs
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