Crypto exchange Kraken recently met with the U.S. Securities and Exchange Commission’s (SEC) Crypto Task Force to discuss the tokenization of traditional assets and its tokenized trading system. The meeting included representatives from Kraken and a law firm, focusing on the regulatory and legal aspects of operating such a system and the potential benefits of asset tokenization.
This meeting comes amid growing scrutiny from traditional financial associations and global regulators who have urged the SEC to tighten regulations on tokenized stocks. These groups have raised concerns about a lack of investor protection compared to traditional markets.
Tokenized stocks, which can be traded 24/7 without the restrictions of traditional markets, are offered by Kraken and Robinhood. Kraken launched its tokenized stock service in May for non-U.S. investors and has since expanded its offering to the Tron blockchain.
While the market for tokenized stocks is still in its early stages, with a current value of around $360 million, industry experts see a massive growth opportunity. According to Binance research, if just 1% of the global equities market were tokenized, the sector could exceed $1.3 trillion.
Despite the current size, a recent Kraken survey revealed that 65% of U.S. investors who hold both equities and crypto believe that crypto will outperform traditional stocks over the next decade. Kraken’s Mark Greenberg has also stated that tokenized stocks should aim to improve accessibility and global reach rather than simply replicate the existing financial system.
August 2025, Cryptoniteuae
