Apple, Tesla and Nvidia Shares to Trade as Digital Tokens on Crypto Exchange Kraken - WSJ

Apple, Tesla and Nvidia Shares to Trade as Digital Tokens on Crypto Exchange Kraken - WSJ

Cryptocurrency exchange Kraken has announced plans to introduce tokenized equities, allowing non-U.S. customers to trade in Apple, Tesla, Nvidia, and other popular stocks as digital tokens over a digital ledger. This innovation aims to make it easier for non-Americans to invest in U.S. stocks, according to the company [1].

Tokenized equities will operate similarly to cryptocurrencies like Bitcoin, trading 24 hours a day, seven days a week, even when the U.S. stock market is closed. This feature could attract investors seeking round-the-clock trading opportunities and those who prefer digital asset platforms over traditional brokerage services.

The move by Kraken underscores the growing trend of integrating cryptocurrency exchanges with traditional financial markets. By offering tokenized equities, Kraken aims to tap into a broader investor base and provide a more accessible entry point for international investors into the U.S. stock market.

While the specifics of how these tokenized equities will function and the regulatory environment they will operate in remain to be determined, the announcement signals a significant shift in the way global investors can access U.S. stocks. Kraken’s initiative could pave the way for further innovations in cross-border financial services and digital asset trading.

References:
[1] https://www.wsj.com/finance/currencies/kraken-crypto-exchange-stock-tokens-e4fc1bb9