- Kraken introduces commission-free stock and ETF trading for U.S. clients.
- U.S. clients can now trade stocks, crypto and stablecoins on Kraken’s platform.
- Kraken plans to expand equities trading to international markets in the future.
Cryptocurrency exchange Kraken, has expanded to provide trading services for US stocks and exchange-traded funds beyond its digital asset offerings. The trading platform allows U.S.-based clients from specific states to access commission-free trading over 11,000 U.S. listed stocks alongside exchange-traded funds (ETFs).
Through this expansion of services, Kraken continues to evolve into a multi-asset platform. Moreover, Kraken’s addition of stock and ETF trading demonstrates its dedication to uniting traditional financial instruments with digital assets while establishing an easy trading experience between different asset classes.
Bridging Digital and Traditional Finance
The cryptocurrency exchange’s equity expansion allows users to bridge traditional financial assets with digital currency markets. U.S. clients in states like New Jersey, Rhode Island, Wyoming, and Connecticut can now manage stocks and digital assets such as cryptocurrencies and stablecoins using a single platform. Through fractional trading, the cryptocurrency exchange enables users to own portions of high-priced stocks, which broadens investment opportunities for more potential investors.
Kraken Securities, a FINRA-regulated division of Kraken, is integrated to enable it’s entry into equities while achieving high standards of regulation. This feature allows users to trade stocks, crypto, and cash seamlessly on the mobile app and the Pro web platform. The all-in-one experience is geared toward investors who want to have traditional and digital asset classes without needing multiple platforms.
Future Expansion Plans and Tokenization Prospects
In addition, Kraken aims to roll out this offering to additional U.S. states in the coming months and expand internationally to the U.K., Europe, and Australia. Although the cryptocurrency exchange is currently not offering tokenized equities, the crypto exchange has stated that it plans to incorporate blockchain technology into trading traditional assets. The ability to tokenize would enable 24/7 trading and faster settlement times increasing flexibility in how assets are traded.
Despite facing regulatory challenges in the US and Europe, the cryptocurrency exchange is preparing to utilize blockchain technology as soon as regulations become clearer. Furthermore, the crypto exchange has partnered with Alpaca to handle order execution, clearance and settlement. However, the company is already exploring tokenized solutions.
With this move, Kraken is seen as a natural progression to introducing equities trading to fill the gap between traditional finance and cryptocurrency markets. Co-CEO Arjun Sethi stated that this ongoing market expansion would support the transformation of traditional assets into tokens.
The crypto exchange continues to lead in the crypto space while advancing the integration of traditional finance systems with digital assets. The cryptocurrency exchange expects this strategic move to drive its growth trajectory as it develops a borderless trading system.
