Kraken and SEC talk tokenized stocks and trading systems
The post Kraken and SEC talk tokenized stocks and trading systems appeared on BitcoinEthereumNews.com.
On Monday, crypto exchange Kraken discussed tokenization of traditional assets and a tokenized trading system with the top US regulator, the SEC. Their meeting comes just a few months after Kraken debuted its xStocks, a service offering tokenized versions of more than 50 US stocks and ETFs. Four Payward, Inc. and Kraken Securities LLC representatives were present at the meeting, joined by two participants from the law firm Wilmer Cutler Pickering Hale and Dorr LLP. Discussions centered on the tokenized trading system, the applicable regulatory framework, legal obligations, and the potential advantages of tokenization. Kraken’s xStocks has over $2.5B in combined DEX and CEX trading volume The meeting caught the crypto community’s attention, with Nate Geraci, President of the ETF Store, posting about it on X. He commented, “Kraken met with the SEC Crypto Task Force today to discuss tokenization of traditional assets … Included the legal & regulatory framework for operating a tokenized trading system in the US. It’s coming.” To his post, some responded with optimism that tokenization would soon take off in the US, while others expressed concerns that the SEC might limit its scope or drag out the approval process. Nonetheless, Kraken is looking to push forward the concept and infrastructure for tokenized trading while addressing provisions that may fall under federal securities laws. At its core, the meeting sought to gauge the SEC’s ability to provide regulatory certainty and foster innovation. Kraken first revealed plans to offer tokenized stocks on May 22 to non-US investors. Now the platform is collaborating with Backed Finance to provide the service. At first, xStocks was available only on Solana and BNB Chain, but it has since expanded to the Tron blockchain, where Backed issues the stocks as TRC-20 tokens. Not to mention, xStocks has since earned over $2.5B total…
Filed under: News - @ August 26, 2025 11:26 am