Kraken, Backed Finance Launch Tokenized Equities to Redefine Global Financial Access

Kraken’s global head of consumer business, Mark Greenberg, has argued that tokenizing traditional financial assets should not merely replicate existing Wall Street systems on a blockchain. In an interview with Cointelegraph, Greenberg emphasized that tokenized equities must transcend the limitations of legacy markets by offering greater accessibility, programmability, and global reach. “Tokenized equities can’t just be ‘Wall Street on a blockchain.’ That misses the point,” he stated, likening the ideal outcome to the internet—“always on, self-directed, and globally accessible” [1].

Greenberg highlighted that the integration of blockchain technology into financial markets represents a transformative shift rather than a superficial upgrade. He criticized the approach of simply wrapping traditional assets in new technology, asserting that the goal is to rebuild financial infrastructure to be as fluid and programmable as cryptocurrencies. “This isn’t just about wrapping old assets in new tech,” he said. “It’s about rebuilding financial access to be as fluid and programmable as crypto” [1].

Kraken’s recent collaboration with Backed Finance exemplifies this vision. On June 30, the firms launched xStocks, a product enabling users to trade tokenized shares of companies like Netflix, Meta, and Coinbase. Available on Kraken, Bybit, and Solana-based DeFi protocols, xStocks aims to democratize access to global markets while maintaining compliance with legal frameworks. Greenberg described the initiative as creating “base-layer systems that are permissionless and composable,” balancing decentralization with regulatory safeguards [1].

The executive also addressed regulatory concerns, stating that Kraken advocates for “programmable and compliant open infrastructure” as the future of capital markets. He argued that regulations should evolve to support innovation rather than stifle it, ensuring user protections remain intact without hindering progress. “Regulation should evolve to support this balance, not suppress it,” Greenberg added [1].

While Kraken leverages Solana for its tokenized equities, other platforms are exploring different blockchains. eToro, for instance, plans to tokenize 100 U.S. stocks using Ethereum. The company’s approach aligns with broader industry efforts to establish standards for tokenized securities. On July 21, Ethereum-aligned organizations convened with the Securities and Exchange Commission to discuss frameworks bridging blockchain technology with traditional regulatory requirements [1].

Greenberg’s critique underscores a growing debate within the fintech sector: whether tokenization should focus on digitizing existing processes or reimagining financial systems entirely. By prioritizing accessibility and programmability, Kraken aims to position tokenized assets as a bridge between traditional markets and the decentralized finance (DeFi) ecosystem. The xStocks initiative reflects this strategy, offering users real-time access to global markets and developers opportunities to build applications akin to stablecoins and DeFi protocols [1].

The market’s response to tokenized equities remains uncertain, but Greenberg’s vision signals a shift toward a more inclusive and flexible financial infrastructure. As competitors like eToro and regulatory bodies work to define the future of tokenization, the emphasis on innovation versus compliance will likely shape the trajectory of the industry.

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[1] ‘Wall Street on a blockchain’ isn’t tokenization endgame: Kraken exec

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