Crypto: Kraken Debuts Tokenized Stock Perpetual Futures For Non-us Traders
Kraken’s new contracts, built on the xStocks framework, offer up to 20x leverage on tokenized benchmarks tied to US equities and gold.
Crypto exchange Kraken has launched trading of tokenized equity perpetual futures on its regulated derivatives platforms, allowing eligible non-US clients to trade 24/7 leveraged exposure to major US stock indexes, gold and individual companies including Nvidia, Apple and Tesla.
According to Tuesday’s announcement, the contracts are structured as perpetual futures, derivatives that trade without expiry, and are offered to eligible clients outside the United States. Kraken described the products as the first regulated tokenized equity perpetual futures to be listed on a derivatives venue.
The products are built using the xStocks framework, which issues blockchain-based representations of publicly traded stocks and exchange-traded funds. Kraken said the contracts reference tokenized equity benchmarks rather than directly holding the underlying shares.
The move builds on the fast-growing market for tokenized equities, which use blockchain-based instruments to mirror traditional shares and enable extended trading hours beyond those of legacy exchanges. By wrapping those instruments in perpetual futures, Kraken is adding leverage and round-the-clock liquidity to equity exposure.
The contracts are available in more than 110 countries and support leverage of up to 20x. Kraken said additional tokenized stock and ETF contracts may be added in the coming months, subject to regulatory approval.
Clearing and execution are handled through Kraken’s derivatives platform, and the products are not available to US clients, according to the company.
The news follows Kraken’s agreement to acquire Backed Finance AG, the issuer of xStocks, in December. On Thursday, Kraken said xStocks had surpassed $25 billion in cumulative transaction volume less than eight months after launch.
Related: Kraken acquires tokenization platform Magna ahead of potential IPO
The move by Kraken reflects a broader push by major US-founded crypto exchanges to expand beyond digital assets and offer exposure to traditional financial markets.
Source: CoinTelegraph
