The crypto exchange that wants to put Wall Street on the blockchain just made its case directly to federal regulators, potentially opening a new chapter in how digital assets merge with traditional finance.
Kraken executives met with the Crypto Task Force of U.S. Securities and Exchange Commission (SEC) on Monday to discuss launching a tokenized trading system that would allow investors to trade traditional assets around the clock using blockchain technology.
The high-stakes meeting represents the exchange’s most direct push yet to bring regulatory clarity to the fast-growing tokenization market.
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According to a memorandum filed on Monday, four Kraken representatives joined two attorneys from prestigious law firm Wilmer Cutler Pickering Hale and Dorr to present their vision to SEC staff. The agenda focused on three critical areas: how a tokenized trading system would operate, what regulatory framework would govern it, and the potential benefits tokenization could deliver to investors.
This discussion builds directly on Kraken’s recent initiatives in the space, including the launch of its tokenized stock service on May 22, 2025, which enables non-U.S. investors to trade American equities around the clock. The exchange further expanded this offering to the Tron blockchain on August 20, aligning with its push for broader blockchain integration and regulatory clarity. In doing so it joined competitors like Robinhood, which introduced similar tokenized stock services in the European Union on June 30.
The timing proves significant as traditional exchange associations and global regulators pressure the SEC to tighten oversight of tokenized stocks. Critics argue these products lack the investor protection safeguards present in conventional markets, since tokenized stocks operate outside standard disclosure and reporting requirements while trading continuously.
Exchange Executives Push for Regulatory Clarity
According to tokenized asset data platform RWA.xyz, tokenized stocks represent $360 million, down 11% this month, just 1.35% of the $26.5 billion tokenized real-world assets (RWAs) on blockchains. Kraken and Robinhood are expanding this market, which could democratize global equities access with regulatory support.
Binance Research projects a $1.34 trillion tokenized equities market by 2030 if 1% of the $134 trillion global stock market is tokenized. Animoca Brands estimates tokenization could unlock a $400 trillion traditional finance market, including private credit, treasuries, commodities, stocks, and bonds.
A 2025 Kraken survey found 65% of U.S. investors active in equities and crypto expect tokenized products to outperform stocks over the next decade, aligning with Kraken’s tokenized stock service launched May 22, 2025.
Institutional adoption grows, with banks exploring tokenization for yield and liquidity, supported by Kraken’s SEC discussions on August 25, 2025, to shape regulatory frameworks.
However, significant hurdles remain, including thin secondary market liquidity, inconsistent legal treatment across jurisdictions, and the absence of standardized risk controls.
Kraken’s direct regulatory engagement signals a strategic shift from treating innovation and regulation as separate battles toward aligning technological advancement with oversight requirements.
