Thomas Daniels
On Monday, Kraken, through its Securities arm under Payward, Inc., met with the U.S. Securities and Exchange Commission’s Crypto Task Force to deliberate on the tokenized stocks ecosystem and its underlying regulatory framework. Representatives from Wilmer Cutler Pickering Hale & Dorr LLP also participated in the memorandum‑recorded discussions, underscoring the increasing convergence between established financial law firms and crypto platforms.
The purpose of the dialogue was clear: to refine the structure of a tokenized trading system, define critical legal requirements for operators, and articulate the benefits of tokenization. This engagement comes amid mounting pressure from global regulators and traditional exchange industry associations calling on the SEC to impose more stringent regulation of tokenized stocks. Stakeholders argue that in contrast to conventional equity markets, tokenized stocks bypass established investor protection protocols.
Kraken, which announced its tokenized stocks offering on May 22, enables non‑U.S. investors to trade U.S. equities around the clock via blockchain. Its competitor, Robinhood, began offering tokenized stocks in the European Union on June 30. Expanding its footprint, Kraken recently integrated tokenized stock products onto the Tron blockchain, further broadening accessibility.
Despite this momentum, tokenized stocks remain in their infancy. The total market value stands at approximately $360 million—an 11 % decline over the preceding 30 days—representing just 1.35 % of the $26.5 billion in tokenized real‑world assets (RWAs) currently on‑chain, as reported by RWA.xyz. Meanwhile, Binance research posits a trillion‑dollar opportunity: if even 1 % of the global equities market becomes tokenized, the sector could reach a valuation exceeding $1.3 trillion.
Supporting this outlook, a recent Kraken survey of 1,000 U.S. investors with exposure to both equities and cryptocurrency found that 65 % anticipate crypto to outperform traditional equities over the coming decade. In a July interview with Cointelegraph, Mark Greenberg, Global Head of Kraken’s Consumer Business Unit, stated that tokenized stocks should enhance accessibility, programmability, and international reach—not merely mirror Wall Street mechanics on‑chain.
