As traditional finance increasingly integrates with blockchain technology, Mark Greenberg, global head of Kraken’s Consumer Business Unit, emphasizes that tokenized equities should not merely replicate Wall Street on the blockchain. Instead, they should reinvent how users access financial assets by unlocking new levels of accessibility, programmability, and global reach. Greenberg told Cointelegraph that tokenized equities must “feel like the internet” — always on, self-directed, and globally accessible — rather than simply mirroring existing legacy systems. This shift represents an opportunity to fundamentally rethink how global markets function in terms of accessibility and user empowerment.

Rebuilding financial assets to be as fluid as crypto

According to Greenberg, many legacy institutions underestimate the transformative potential of tokenization. “This isn’t just about wrapping old assets in new tech,” he said. “It’s about rebuilding financial access to be as fluid and programmable as crypto.” He envisions retail users gaining real-time access to global markets with tools previously reserved for hedge funds. For developers, tokenized stocks offer a platform to build innovative applications, much like stablecoins and DeFi protocols today. When asked about regulation, Greenberg highlighted Kraken’s belief that the future of capital markets lies in programmable and compliant open infrastructure. On June 30, Kraken partnered with Backed Finance to launch xStocks, a product enabling users to trade over 60 tokenized stocks such as Netflix, Meta, and Coinbase. This product is live on Kraken, Bybit, and several DeFi protocols on Solana. “With tokenized equities like xStocks, we’re building base-layer systems that are permissionless and composable, while ensuring that the assets themselves adhere to clear legal frameworks,” Greenberg explained. He added that this approach balances decentralization with regulatory protections, advocating for regulations that support rather than suppress innovation.

Stock tokenization on Ethereum

Other platforms are also entering the tokenized stocks space. For example, eToro plans to tokenize 100 popular U.S. stocks on Ethereum, contrasting Kraken’s Solana-based approach. Meanwhile, Ethereum-aligned organizations recently met with the U.S. Securities and Exchange Commission to discuss standards that bridge onchain technology with traditional regulatory requirements. Tokenization is rapidly evolving, with industry players working to create compliant, programmable financial assets that expand access and functionality beyond traditional markets.

Frequently Asked Questions (FAQ)

Tokenized Equities

Q: What is the main goal of tokenized equities, according to Mark Greenberg? A: The main goal is not to replicate Wall Street on the blockchain, but to reinvent how users access financial assets by offering greater accessibility, programmability, and global reach. Q: How should tokenized equities "feel" to users? A: They should "feel like the internet" – always on, self-directed, and globally accessible, rather than just mirroring legacy systems. Q: What is the transformative potential of tokenization that legacy institutions might underestimate? A: It's not just about wrapping old assets in new technology, but about rebuilding financial access to be as fluid and programmable as crypto. Q: What opportunities does tokenized stocks offer to developers? A: Developers can use tokenized stocks as a platform to build innovative applications, similar to how stablecoins and DeFi protocols function today. Q: What is Kraken's stance on regulation for capital markets? A: Kraken believes the future of capital markets lies in programmable and compliant open infrastructure. Q: What is Kraken's xStocks product? A: xStocks is a product launched in partnership with Backed Finance that enables users to trade over 60 tokenized stocks, available on platforms like Kraken, Bybit, and Solana DeFi protocols. Q: How does Kraken balance decentralization with regulatory protections for tokenized equities? A: By building base-layer systems that are permissionless and composable, while ensuring the assets adhere to clear legal frameworks, balancing innovation with regulatory safeguards. Q: What is eToro's approach to tokenized stocks? A: eToro plans to tokenize 100 popular U.S. stocks on the Ethereum blockchain, a contrast to Kraken's Solana-based approach. Q: What discussions are Ethereum-aligned organizations having regarding tokenized stocks and regulation? A: They are meeting with the U.S. Securities and Exchange Commission to discuss standards that bridge onchain technology with traditional regulatory requirements.

Crypto Market AI's Take

The evolution of tokenized equities signifies a broader trend within the financial sector toward leveraging blockchain technology for enhanced accessibility and programmability. At Crypto Market AI, we closely monitor these advancements, understanding that the future of finance will likely integrate traditional assets with the efficiency and innovation of the digital asset space. Our platform is designed to provide comprehensive market intelligence, including insights into tokenization trends and their impact on global markets. For those looking to understand the foundational elements of digital assets and how they operate, our guide on what are tokens in cryptocurrency offers valuable context. Furthermore, our focus on AI-driven insights, as seen in our coverage of AI-driven crypto trading tools, directly supports the kind of innovation discussed in tokenized assets, aiming to empower users with sophisticated analytical capabilities.

‘Wall Street on a blockchain’ isn’t tokenization endgame: Kraken exec

Rebuilding financial assets to be as fluid as crypto

Stock tokenization on Ethereum

Frequently Asked Questions (FAQ)

Tokenized Equities

Crypto Market AI's Take

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