Key Highlights
- Kraken debuts what it describes as the inaugural regulated perpetual futures for tokenized equity securities
- Service is accessible to qualified investors outside the United States across more than 110 nations
- Launch portfolio features S&P 500, Nasdaq 100, Apple, Nvidia, Tesla, and a gold-tracking ETF
- Trading operates continuously with leverage options reaching 20x, supported by 1:1 asset backing
- Competitor Ondo Finance similarly revealed intentions this month to introduce perpetual contracts for tokenized equities
Cryptocurrency exchange Kraken has introduced what it characterizes as the inaugural regulated perpetual futures instruments linked to tokenized U.S. equities. These financial products are accessible to qualified investors outside the United States across more than 110 jurisdictions.
These instruments leverage xStocks, a tokenized equity infrastructure that Kraken brought into its portfolio through a December 2024 acquisition. This strategic purchase provided Kraken with the technological backbone necessary to deliver token-wrapped stock access through its trading ecosystem.
The debut lineup features tokenized representations of the S&P 500 index, Nasdaq 100 index, Apple, Nvidia, Tesla, and SPDR’s gold-focused ETF. The exchange has indicated intentions to broaden the selection with additional equities and exchange-traded funds over the upcoming months.
These instruments facilitate continuous trading while permitting leverage ratios up to 20x. The framework parallels perpetual futures structures already prevalent throughout cryptocurrency markets.
Different from conventional futures contracts, perpetuals lack expiration dates. They undergo continuous settlement via funding rate mechanisms exchanged between long and short position holders, enabling traders to maintain exposure for extended durations.
The foundational xStocks tokens maintain full collateralization with 1:1 backing from the underlying securities. This architecture aims to maintain price stability even during traditional U.S. market closure periods.
Product Mechanics Explained
Market participants can utilize these perpetuals to establish or hedge positions in U.S. equity markets without direct ownership of the tokenized instruments. This approach delivers enhanced capital efficiency for traders executing active strategies.
Perpetual futures have emerged as the predominant instrument within crypto derivatives markets. Decentralized trading platforms handled more than $600 billion in perpetuals volume during January exclusively, with Hyperliquid contributing approximately $200 billion to that total.
Kraken’s innovation adapts this identical framework to conventional asset categories including equities and commodities. The company asserts this marks the first implementation within a regulated compliance structure.
Mark Greenberg, who leads Kraken’s global consumer division, characterized the introduction as demonstrating what emerges “when traditional markets are rebuilt for a crypto-native, always-on world.”
He further noted that tokenized equities functioning as perpetual futures signify a transformative stage for international capital markets, enabling stocks and indices to trade with comparable flexibility to digital assets.
Emerging Competition in Tokenized Equity Derivatives
Kraken faces competition in this emerging sector. Competing platform Ondo Finance disclosed plans earlier this month to similarly introduce perpetual trading capabilities connected to its tokenized stock offerings.
Ondo’s initiatives have not yet achieved comparable regulatory infrastructure or market penetration relative to Kraken’s current launch. Both developments signal expanding interest in the tokenized stock derivatives marketplace.
These financial instruments target international investors, where regulatory pathways for such products currently present fewer obstacles. Kraken has not disclosed intentions to extend these contracts to United States-based customers.
Kraken’s perpetual futures for tokenized equities became operational on February 24, 2026.
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