Kraken Meets SEC to Discuss Tokenized Trading System

Crypto exchange Kraken held discussions with the U.S. SEC Crypto Task Force on Monday, focusing on the regulatory framework for tokenized assets and the operation of a tokenized trading system. The meeting included representatives from Kraken’s parent company Payward, Inc., Kraken Securities LLC, and lawyers from Wilmer Cutler Pickering Hales and Dorr LLP, according to a memorandum filed the same day. The agenda covered the legal requirements for tokenization, the structure of a tokenized trading platform, and its potential benefits for investors and markets. Kraken’s meeting comes as global regulators and traditional finance associations have pressed the SEC to adopt stricter oversight of tokenized securities, citing gaps in investor protections compared with established stock exchanges. SEC Weighs Oversight of Tokenized Stocks Tokenized stocks, unlike their traditional counterparts, can trade 24/7 across different blockchains, raising both opportunities and risks. Kraken and Robinhood are among the most prominent platforms to offer such services. Kraken first launched its tokenized stock product on May 22, allowing non-U.S. investors to trade U.S. equities at all hours. Robinhood followed in June by enabling European Union users to access tokenized shares of U.S. companies. Expanding its reach, Kraken announced last Wednesday that it had added support for trading tokenized stocks on the Tron blockchain, signaling its intention to diversify access to the emerging market. Tokenized Stocks Still in Early Stages Despite growing interest, tokenized stocks remain in the early stages of adoption. Data from RWA.xyz shows the total value of tokenized stocks currently stands at around $360 million, reflecting an 11% decline over the past 30 days. This amount represents only 1.35% of the nearly $26.5 billion worth of tokenized Real World Assets (RWAs) now circulating on-chain. However, research suggests the sector could expand significantly in the coming years. A recent Binance study estimated that if even 1% of the global equities market were tokenized, the sector could surpass $1.3 trillion in market capitalization . For the SEC, Kraken’s discussions highlight the balance regulators must strike between fostering innovation and ensuring investor safeguards. For exchanges, it underscores the race to secure a foothold in what could become one of the largest intersections of traditional finance and blockchain technology. The post Kraken Meets SEC to Discuss Tokenized Trading System appeared first on TheCoinrise.com .