Kraken Meets SEC to Discuss Tokenized Trading and Market Oversight

Highlights:

• Kraken has met with the SEC to discuss tokenized stocks and explore global trading opportunities for investors.
• Tokenized stocks allow 24/7 trading and could grow to over $1 trillion if adoption increases.
• Real-world asset tokenization may reach 16 trillion by 2030 as institutions expand digital holdings.

Kraken representatives met with the US Securities and Exchange Commission’s Crypto Task Force on Monday. The meeting included four officials from Kraken’s parent company, Kraken Securities, and two lawyers from WilmerHale. The Kraken and SEC meeting shared regulatory concerns, the legal environment, and the possible advantages of tokenized assets.

JUST IN: 🇺🇸 SEC’s Crypto Task Force met with Kraken to discuss a tokenized trading system and regulatory clarity on asset tokenization.#Crypto #BTC #Bitcoin pic.twitter.com/T1RiIxuWwE

— Official Crypto Traders™ (@CryptoTraders62) August 26, 2025

Global regulators and traditional exchange groups have urged the SEC to increase oversight of tokenized stocks. They argued that these digital assets lack the investor protections that conventional markets provide. Kraken aims to address these concerns while advancing its tokenized trading offerings.

Kraken launched its tokenized stock service earlier this year to allow non-US investors to trade US equities around the clock. Rival platform Robinhood introduced a similar service to European Union users on June 30. Kraken recently expanded its tokenized stock offerings to the Tron blockchain.

Kraken (@krakenfx), Backed (@BackedFi) xStocks (@xStocksFi), Tron (TRX) (@trondao) Extensions… RWA Stock Tokenization Accelerates

💰 The tokenization of real-world assets is accelerating as Kraken and Backed Finance's "xStocks" expands its tokenized stock service to the Tron… pic.twitter.com/YTmRM8SvGW

— TokenPost (@tokenpost) August 21, 2025

The SEC meeting indicated that tokenized stocks are still under examination. According to Kraken, tokenized trading can create new opportunities that do not directly copy the Wall Street systems onto a blockchain. The exchange also provided market research to demonstrate growing interest among crypto and equity investors.

Tokenized Trading Gains Market Attention Amid SEC-Kraken Meeting

The use of tokenized stocks enables 24/7 trading beyond conventional market time periods. This liquidity appeals to investors who want broad exposure to global equities. Tokenized stocks take up a minor share of the entire tokenized asset space.

As shown in the data by RWA.xyz, the combined value of tokenized stocks sits at 360 million USD, an 11% decline over the past 30 days. The assets make up just 1.35% of tokenized real-world assets that are already on-chain.

According to a Kraken survey of 1,000 US investors, 65% believe that cryptocurrencies have a higher chance of outperforming traditional equities in the next 10 years. According to Mark Greenberg, who heads the Consumer Business Unit at Kraken, tokenized shares are accessible, programmable, and universal. He added that the goal is to create new investment options rather than copy conventional markets.

The use of tokenized trading also allows investors to diversify their holdings. The opportunity to trade US equities anywhere in the world creates greater liquidity and access to new markets. Investors can combine different tokenized assets at once, making them flexible and potentially more profitable.

Tokenized Real-World Assets Show Long-Term Potential

Institutional investors and blockchain-native companies are becoming increasingly interested in real-world tokenization. Research conducted by Animoca Brands pegs the total addressable market at $400 trillion across lending, treasury debt, commodities, stocks, and alternative funds. This market opens a huge growth potential for tokenized assets.

The new applications of tokenization include money market funds, trade finance, and some form of private credit. Analysts highlight that the regulatory structure in Hong Kong, Singapore, and the US may facilitate increased use. There are still some challenges, such as poor secondary market liquidity, inconsistent legal status, and a lack of standard risk controls.