- Kraken bets big on tokenized equities, seeing them outgrow stablecoins.
- Ink network links DeFi with TradFi, unlocking new financial services.
- Kraken expands with NinjaTrader, fueling futures in tokenized assets.
Tokenized equities are set to become a much larger market than stablecoins, according to Kraken co-CEO Arjun Sethi. He predicts the emergence of hundreds or even thousands of tokenized equities, each potentially larger than Tether, as Kraken accelerates its push to bridge traditional finance and crypto.
Kraken’s Bold Vision for Tokenized Equities
According to a post by Kyle Chassé on X, Sethi emphasized the transformative potential of tokenized equities, citing their transparency, global accessibility, and around-the-clock trading. He noted that traditional American financial products are often hard to access overseas, but tokenized equities can provide a seamless alternative.
Kraken’s recent $1.5 billion acquisition of NinjaTrader aims to support futures and options trading on tokenized equities, expanding beyond crypto and reinforcing its position in decentralized finance (DeFi).
Kraken’s Multi-Asset Strategy and Ink Network
Kraken’s Ethereum Layer 2 network, Ink, underpins the firm’s plan to connect traditional finance with DeFi. Through partnerships with Apollo Global Management and Securitize, Kraken offers tokenized access to the Apollo Diversified Credit Fund.
The Ink network enables users to leverage tokenized equities as collateral and access financial services without directly using Kraken’s platform. This strategic approach bridges the gap between traditional finance and decentralized finance, offering global access to structured products.
Competitive Landscape and Future Plans
Kraken’s entry into tokenized Bitcoin on Ethereum and Layer 2 Optimism, now available on Ink, is a signal that it’s serious about reducing market entry friction. The shift is part of Kraken’s larger goal of providing frictionless access to DeFi products and services.
Meanwhile, Coinbase’s Bitcoin-backed loans via Morpho have driven $4 billion in total value locked. The rise of tokenized assets highlights the growing competition in the DeFi space as exchanges innovate rapidly.
Sethi views Kraken as a technology company enabling a diverse ecosystem, rather than merely a crypto exchange. Kraken will continue to publish quarterly financials but has no immediate plans to go public, with Sethi stating it would be a decision for the clients’ benefit.
