Kraken Builds Bridge Between TradFi and Crypto With 2% Transfer Bonus

Kraken, a leading cryptocurrency exchange, has announced significant enhancements to its equities offering in the United States, introducing new avenues for investors to generate passive income and streamline asset management. The updates, detailed in a press release and corroborated by user experiences and third-party analyses, include a 2% ACATS transfer bonus, a Fully Paid Securities Lending (FPSL) program, extended trading hours, and the launch of tokenized stocks (xStocks). These developments underscore Kraken's strategy to integrate traditional finance (TradFi) with digital assets, positioning itself as a unified platform for managing diverse portfolios.

ACATS Transfer Bonus and Eligibility

Kraken Securities, the exchange's licensed brokerage arm, is offering a limited-time 2% transfer bonus for users who transfer stocks and ETFs via the Automated Customer Account Transfer Service (ACATS) by September 30, 2025. The bonus is paid in USDG, Kraken's stablecoin, and requires a 12-month hold period starting October 1, 2025. Kraken+ subscribers receive the full 2% rate, while non-subscribers earn 1%. To qualify, users must opt into the Fully Paid Stock Lending (FPSL) program, which allows them to earn interest by lending their securities to short sellers. However, the promotion excludes residents of New York, Maine, and Washington, and participants cannot initiate outbound ACATS transfers during the hold period.

Passive Income via FPSL and Market Insights

The FPSL program enables investors to generate income from idle stocks by lending them through Kraken's platform. The exchange emphasizes transparency, allowing users to track estimated yields and lifetime earnings. While the program does not guarantee returns, Kraken maintains compliance-first practices, including collateralization, to mitigate risks such as market volatility or recall delays. Additionally, Kraken Pro users can now trade U.S. stocks and ETFs 24/5, providing flexibility to react to global market events outside traditional hours. Enhanced market depth tools on Kraken Pro offer institutional-grade analytics, including liquidity data and order-book imbalances, aiding retail investors in making informed decisions.

Tokenized Stocks (xStocks) and Unified Portfolio Management

Kraken has introduced xStocks, tokenized representations of real-world U.S. stocks and ETFs, including Apple (AAPLx), Tesla (TSLAx), and NVIDIA (NVDAx). These assets are backed 1:1 by the underlying equities and issued as SPL tokens on the Solana blockchain. xStocks enable 24/5 trading and fractional purchases starting at $1 USD, with automatic reinvestment of dividend equivalents into the same token. However, users should note that xStocks do not confer shareholder rights such as voting or direct dividend payments. The feature is currently available to non-U.S. retail clients in select countries, with weekend trading and broader geographic expansion in development.

Strategic Vision and Regulatory Compliance

Kraken's equities expansion aligns with its broader mission to bridge TradFi and digital assets. By integrating ACATS transfers, securities lending, and tokenized equities, the platform aims to provide a holistic infrastructure for managing cash, stablecoins, cryptocurrencies, and stocks within a single account. The exchange also highlights its SIPC insurance coverage for up to $500,000 in securities and cash, reinforcing trust in its brokerage services. Regulatory compliance remains a priority, with Kraken emphasizing adherence to FINRA and SEC frameworks as it expands its offerings.

User Considerations and Challenges

While Kraken's initiatives present opportunities, users have reported challenges, such as transfer failures with certain brokers (e.g., HSBC, Wells Fargo) and the need for proactive support to resolve issues. Additionally, the crypto-centric nature of Kraken's platform has raised questions about the security of dividend reinvestment and cost-basis tracking during transfers. Investors are advised to conduct due diligence, document transfer requests, and consider the tax implications of the 1099-INT forms for bonuses exceeding $600.

Kraken's latest updates reflect its ambition to redefine investing by combining the speed and transparency of blockchain technology with traditional financial instruments. As the crypto and equity markets evolve, the exchange's hybrid approach positions it as a key player in the convergence of digital and conventional finance.

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Source: [1] Doctor of Credit (https://www.doctorofcredit.com/kraken-securities-stock-eft-2-transfer-bonus-1-year-hold/)

[2] Moneybeep (https://moneybeep.com/kraken-brokerage-2-acat-transfer-bonus-on-stocks-etfs/)

[3] Teamblind (https://www.teamblind.com/post/update-a-few-observations-on-krakens-unlimited-2-stock-transfer-bonus-from-my-recent-experience-kjgptf2r)

[4] Cryptonews (https://cryptonews.com/press-releases/kraken-expands-equities-offering-in-the-us-with-new-ways-to-earn-passive-income/)

[6] Crowdfunder Insider (https://www.crowdfundinsider.com/2025/10/254162-kraken-announces-expansion-of-equities-offering-with-key-updates/)

[8] Kraken (https://www.kraken.com/xstocks)