Key Highlights
- Kraken introduced commission-free access to more than 7,000 U.S. equities for customers in the European Economic Area
- The platform is the first crypto exchange to provide traditional shares alongside tokenized versions in a single regulated account
- More than 700 xStocksātokenized equities with 1:1 backing by actual sharesācan be traded beyond standard market hours
- Rival platforms including Coinbase, Binance, Crypto.com, and Robinhood are similarly entering the European stock trading space
- The tokenized equities sector reached approximately $1.4 billion in valuation by May, attracting regulatory scrutiny from the SEC
The cryptocurrency exchange Kraken has introduced commission-free access to over 7,000 U.S. equities for qualified users throughout the European Economic Area. The platform made the announcement on August 18.
The new service is accessible via Kraken Pro on both desktop and mobile platforms, along with the primary Kraken application. Although trading commissions have been eliminated, users may encounter other charges and regional limitations.
Kraken provides access to both conventional shares and xStocks, which represent tokenized forms of U.S. equities with full 1:1 backing by actual shares. Users can access more than 700 xStocks and over 600 cryptocurrency assets through the same account interface.
According to the platform, this positions it as the inaugural crypto-focused exchange to deliver traditional equities alongside their tokenized counterparts within a single regulated account structure.
Mark Greenberg, serving as chief commercial officer for Kraken’s parent entity Payward, stated the initiative “eliminates the artificial divide between traditional and tokenized formats of the same asset.”
Distinguishing xStocks From Conventional Shares
Conventional shares operate within standard trading hours, adhere to established settlement protocols, and include traditional shareholder rights. xStocks function as blockchain-based tokens enabling transfers to self-custody wallets and facilitate trading activity outside normal market hours.
The exchange intends to tokenize allocations connected to new IPO offerings. Qualified users may submit nonbinding expressions of interest, with tokenization occurring once public trading commences.
Stock trading services operate through Payward Europe Digital Solutions, a Cyprus-based investment firm authorized under a MiFID license. This structure maintains separation between securities operations and Kraken’s cryptocurrency activities in accordance with Europe’s MiCA regulatory framework.
Industry Rivals Expanding Similar Services
Kraken faces growing competition in this space. Coinbase secured U.K. regulatory authorization to provide equities and derivatives alongside cryptocurrency offerings. The platform already grants U.S. users access to over 8,000 stocks and ETFs via a separate brokerage entity.
Coinbase intends to roll out tokenized U.S. equities for international customers, featuring 1:1 backing by real shares, automated dividend distributions, and blockchain-based settlement.
Binance provides access to more than 7,000 U.S. stocks and ETFs for qualified international customers and is developing its proprietary tokenized equity offering called bStocks.
Crypto.com and Robinhood both provide tokenized stock options in European markets. Bitpanda has chosen an alternative strategy, offering conventional U.S. equities instead of tokenized alternatives.
Customer demand is fueling this industry shift. Keith Grose, Coinbase’s U.K. CEO, noted that users prefer consolidating their financial activities across fewer platforms.
The tokenized equities market achieved a valuation of approximately $1.4 billion in May. The SEC is developing a regulatory framework for blockchain-based stock trading as the industry continues expanding.
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