Crypto exchange Kraken said on Thursday it is launching tokens of U.S. equities that will trade around the clock, giving non-U.S. investors exposure to high-profile companies such as Apple, Tesla and Nvidia.
Tokenization refers to the process of issuing digital representations of publicly-traded securities. Instead of holding the securities directly, investors hold tokens that represent ownership of the securities.
The tokens' launch outside the U.S. comes amid growing interest in blending traditional finance with blockchain infrastructure. While tokenized securities have yet to gain widespread adoption, proponents say they hold the potential to significantly reshape how people access and invest in financial markets.
In a January opinion piece for the Washington Post, Robinhood CEO Vlad Tenev said tokenization could also allow retail investors to access private companies' stocks.
Kraken's tokens, called xStocks, will be available in select markets outside the United States, it said, without naming the markets. The move was earlier reported by the Wall Street Journal.
The offering is currently not available for U.S. customers.
The renewed enthusiasm for blockchain has also coincided with bitcoin's rally as investors anticipate lighter regulation under President Donald Trump.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
