U.S.-based cryptocurrency exchange, Kraken Partners, has partnered with Backed, a leading issuer of tokenized stocks, and the Solana Foundation to bring tokenized U.S. equities to investors worldwide.
According to a company press release, Backed will initially deploy SPL-based digital representations of U.S.-listed stocks (including Apple (AAPL-0.39%), Tesla (TSLA-3.33%), and Nvidia (NVDA-1.54%)) and ETFs on the Solana blockchain. These tokenized assets will soon be available to eligible Kraken clients in select non-U.S. markets directly through the Kraken app.
Under the Trump administration, the regulatory environment has become more favorable for companies like Kraken. In March, Trump’s SEC dismissed its case against crypto exchange Kraken, which was accused of combining the roles of an exchange, broker, dealer, and clearing agency without registering securities.
Matthew Ruley, director of content for dypto-crypto, a crypto information site, said that by offering assets in non-U.S. markets, Kraken is doing some “alpha testing” so they’re ready to go the second they’re given the green light to begin in the United States.
Meanwhile, Dave Weisberger, co-founder at crypto strategy firm CoinRoutes said Kraken’s move is one more way to make crypto available to the masses.
“It brings fully transparent access to investing in U.S. stocks to all geographies Kraken operates in. It likely will be available at a much lower cost than GDRs (Global depository receipts) which are offered institutionally today,” Weisberger said, adding that, if successful, this may be seen as the first step towards the mass tokenization of equities. And if that happens, Weisberger predicts lower trading costs, improved liquidity and streamlined operational functions.
Other stakeholders also lauded the news.
“This is a big moment. Tokenized stocks on Solana mean everyday investors can finally access U.S. equities without being gated by geography, legacy systems, or slow settlement,” says Mike Cahill, CEO of Doura Labs.
Cahill says that Kraken and Backed are pushing the market forward by proving that public equities can move at internet speed.
“It goes way beyond more efficient—this is about making it more open, accessible, and real-time.”
— Vinamrata Chaturvedi contributed to this article.
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