Kraken Meets SEC Crypto Job Pressure to Talk about Asset Tokenization

Kraken has held talks with the US Securities and Alternate Fee (SEC) over its plans to broaden into tokenized markets, highlighting rising scrutiny of one of many fastest-growing corners of crypto.

Key Takeaways:

• Kraken met with the SEC to debate regulatory frameworks for its tokenized buying and selling system.
• Regulators are urgent for stricter oversight of tokenized shares, citing weak investor protections.
• Tokenized inventory markets stay small at $360M however may attain $1.3T if adoption accelerates.

A memorandum filed Monday confirmed SEC employees met with 4 representatives from Kraken’s father or mother firm Payward, its subsidiary Kraken Securities, and two legal professionals from Wilmer Cutler Pickering Hale and Dorr LLP.

The agenda included the framework for a tokenized buying and selling system, regulatory necessities for its operation, and the broader advantages of asset tokenization.

Kraken Pushes SEC to Tighten Oversight of Tokenized Shares

The assembly comes as conventional change teams and international regulators push the SEC to tighten oversight of tokenized shares, warning that investor protections widespread in regulated markets are missing.

In contrast to standard equities, tokenized shares might be traded across the clock and infrequently fall outdoors the identical disclosure and reporting guidelines.

Kraken introduced its tokenized inventory service on Could 22, permitting non-U.S. buyers to commerce U.S. equities 24/7.

Rival platform Robinhood launched an analogous product within the European Union on June 30. Kraken adopted up Wednesday by increasing its tokenized inventory providing to the Tron blockchain.

The market stays small however is attracting consideration.

In response to RWA.xyz, the whole worth of tokenized shares stands at $360 million, down 11% over the previous month, but this nonetheless represents just one.35% of the $26.5 billion in tokenized real-world property at the moment onchain.

Binance Analysis has projected the sector may attain greater than $1.3 trillion if even 1% of the worldwide equities market is tokenized.

Kraken is betting on that progress. A latest survey by the change discovered that 65% of U.S. buyers energetic in each equities and crypto imagine digital property will outperform shares over the following decade.

Tokenized Actual-World Belongings Could Unlock $400T TradFi Market

In a latest analysis, Web3 digital property agency Animoca Manufacturers stated that tokenization of RWAs may unlock a $400 trillion conventional finance market.

Animoca researchers Andrew Ho and Ming Ruan stated the worldwide marketplace for non-public credit score, treasury debt, commodities, shares, various funds, and bonds represents an enormous runway for progress.

“The estimated $400 trillion addressable TradFi market underscores the potential progress runway for RWA tokenization,” they wrote.

In the meantime, in accordance with the 2025 Skynet RWA Safety Report, the marketplace for tokenized RWAs may develop to $16 trillion by 2030.

Tokenized U.S. Treasuries alone are projected to achieve $4.2 billion this yr, with short-term authorities bonds driving many of the exercise.

Institutional curiosity is accelerating, with main banks, asset managers, and blockchain-native companies exploring tokenization for yield and liquidity administration.

Skynet highlighted rising use instances throughout non-public credit score, commerce finance, and cash market funds, noting that regulatory frameworks in Hong Kong, Singapore, and the U.S. may additional help adoption.

The report additionally flagged key hurdles, together with skinny secondary market liquidity, inconsistent authorized remedy throughout jurisdictions, and the absence of standardized danger controls.

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