Cryptocurrency exchange Kraken is launching what it calls the first regulated perpetual futures contracts based on tokenized stocks, the company told CoinDesk.
The products, available to eligible non-U.S. users in more than 110 countries, track digital versions of major U.S. stocks, indices and a gold ETF, based on the xStocks tokenized stock offering that Kraken acquired in December.
Initial listings include tokenized versions of the S&P 500, the Nasdaq 100, Apple, Nvidia, Tesla and the SPDR Gold ETF (GLD), the firm said.
The launch of Kraken is important because perpetual securities trading has enjoyed rapid growth, dominating crypto derivatives trading. Blockchain-based decentralized exchanges processed more than $600 billion in criminal trading volume in January, with Hyperliquid claiming the largest market share with monthly volume of $200 billion, data from The Block shows.
Unlike traditional futures contracts, felons do not expire and operate 24/7 and allow users to trade with high leverage. Investors prefer them for their continuous access, capital efficiency, and the ability to take long or short positions at any time.
With Kraken’s move, that structure now expands to other asset classes like stocks. According to the company, the underlying xStocks tokens are fully collateralized and backed 1:1 by the referenced assets. That provides a price anchor even when U.S. exchanges are closed. Tokenized stocks trade 24 hours a day and support up to 20x leverage.
“This is what it looks like when traditional markets rebuild for a crypto-native, always-on world, not a moment too soon given the volatility all markets are exhibiting,” Mark Greenberg, global head of consumer at Kraken, said in a statement.
“Tokenized equities regulated as perpetual futures represent a new chapter for global capital markets, one in which stocks, indices and commodities are traded with the same speed, accessibility and flexibility as cryptocurrencies through tokenization, offering a more robust risk management experience,” he added.
Kraken said it plans to expand the line with more tokenized stocks and ETFs in the coming months.
Rival tokenization company Ondo Finance earlier this month also announced plans to launch criminals into trading its tokenized shares.
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