Kraken Launches Tokenised US Stocks in EU, Challenging Robinhood

Kraken, the US-based crypto exchange, has launched Kraken tokenised stocks across the European Union, opening new opportunities for millions of eligible clients. The move positions Kraken as a strong competitor to Robinhood, which rolled out similar tokenised trading services earlier this summer.

The EU rollout offers access to over 60 US-listed stocks and exchange-traded funds (ETFs). Investors can now trade these assets seamlessly on blockchain, bridging traditional equities and digital finance. Kraken’s initiative highlights the growing mainstream acceptance of crypto and its push for accessible, interoperable investing.

Positive Momentum for Kraken and Investors

Industry observers view this launch as a major win for Kraken and its users. “With Kraken tokenised stocks, assets aren’t trapped inside a single exchange, wallet, or blockchain,” said Mark Greenberg, Kraken’s global head of consumer. “They can move freely at any time, offering flexibility to investors.”

The product bypasses common trading hurdles such as high fees, limited market hours, and settlement delays. EU clients can participate in the US equities market like never before.

Kraken is expanding tokenisation infrastructure beyond Solana, with Ethereum and BNB Chain support expected soon. This cross-chain expansion makes equities composable like stablecoins, integrating them into Web3 ecosystems.

The launch follows Kraken’s acquisitions of Breakout, a proprietary trading platform, and NinjaTrader. Analysts believe these moves strengthen Kraken’s position in Europe’s evolving crypto market.

Regulation and Market Dynamics

While promising, Kraken faces stiff competition from Robinhood, which already has a significant European user base. Success of Kraken tokenised stocks will depend on regulatory compliance, market adoption, and platform scalability.

EU users must complete know-your-customer verification and an appropriateness test. These measures protect investors but could slow adoption among casual traders. Still, the approach balances innovation with compliance, reflecting broader trends in digital asset regulation.

Risks and Challenges

Some analysts warn that tokenised stock trading could divert liquidity from traditional exchanges. Operational and legal complexities could also challenge Kraken as competition intensifies.

Tokenisation offers convenience but carries risks, including potential technical glitches or smart contract vulnerabilities. Kraken will need strong security and clear investor disclosures to maintain credibility.

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