With traditional finance becoming more intertwined with blockchain technology, Kraken executives said simply bringing traditional financial products into the blockchain won’t cut it, not the ultimate goal of tokenization.
Mark Greenberg, global head of Kraken’s consumer business unit, told Cointelegraph that tokenized stocks must exceed the replenishment of the Wall Street system. Instead, he said there would need to be a new level of accessibility, programmaticity and global reach unlocked.
He argued that it was an opportunity to fundamentally rethink how the global market works in terms of accessibility, programmaticity, and user access to legacy tools.
“Tokenized stocks aren’t just “Wall Street on the Blockchain.” Greenberg told Cointelgraf. He said stocks need to “feel like the internet.”
Restructuring of financial assets is as fluid as crypto
Greenberg said most legacy agencies underestimate how transformative the change is. “This is not just about wrapping old assets with new technology,” Greenberg told Cointelgraf. “It’s about restructuring financial access to be as fluid and programmable as crypto.”
He added that retail users should be able to access the global market in real time using tools previously reserved for hedge funds. For developers, tokenized inventory provides a platform for building applications, similar to today’s Stablecoins and Defi protocols.
When asked about the role of regulations in tokenization, Greenberg told Cointelegraph that Kraken believes the future of capital markets lies in programmable, compliant open infrastructure.
On June 30th, Kraken partnered with Backed Finance to launch Xstocks, a product that allows users to trade over 60 tokenized stocks.
The product allows users to trade stocks such as Netflix, Meta, Coinbase and others, and has now come live on several Decentralized Financial (DEFI) protocols from Kraken, Bybit, and Solana.
“Using tokenized stocks like Xstocks creates a permitted, configurable base tier system while ensuring that the assets themselves adhere to a clear legal framework,” Greenberg told Cointelegraph.
He said the approach would give users decentralization without waiving the protections that regulators focus on. “Regulations need to evolve to support this balance rather than restrain it,” Greenberg added.
Related: Fees, collateral gives Defi Edge as Tradfi Eyes Crypto Loans: 1inch exec
Stock tokenization at Ethereum
Apart from Kraken, trading platform Etoro is planning to launch tokenized stocks. However, unlike Kraken, which uses the Solana network, the company tokenizes 100 US stocks with Ethereum.
While companies compete to deploy stocks, Ethereum Group is working with regulators to create industry standards for tokenized securities.
On July 21, the organisation handed over to Ethereum met with the Securities and Exchange Commission to discuss standards that bridge on-chain technology to traditional regulatory requirements.
https://www.youtube.com/watch?v=ry9mi57pbjs
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