Kraken Exec: Tokenized Equities Must Prioritize Accessibility and Programmability Over Wall Street Replication

Kraken’s global head of consumer business, Mark Greenberg, has emphasized that tokenized equities should not merely replicate traditional financial systems on a blockchain. In a recent interview with Cointelegraph, Greenberg argued that the true potential of tokenization lies in reimagining how financial assets function, prioritizing accessibility, programmability, and global reach over a direct onchain mirror of Wall Street. “Tokenized equities can’t just be ‘Wall Street on a blockchain,’” he stated, highlighting the need for systems that operate like the internet—always on, self-directed, and globally accessible [1].

Greenberg criticized the tendency of legacy institutions to understate the transformative possibilities of tokenization. He stressed that the goal is not merely to digitize existing assets but to rebuild financial infrastructure to be as fluid and programmable as cryptocurrencies. This approach, he noted, could democratize access to markets by enabling real-time global trading for retail investors and providing developers with tools to build applications akin to stablecoins and DeFi protocols. “This isn’t just about wrapping old assets in new tech,” he remarked, underscoring the shift toward open, permissionless systems [1].

Kraken’s recent launch of xStocks, a product in partnership with Backed Finance, exemplifies this vision. The platform allows users to trade tokenized shares of companies like Netflix, Meta, and Coinbase on exchanges such as Kraken, Bybit, and Solana-based DeFi protocols. Greenberg emphasized that these assets operate on “base-layer systems that are permissionless and composable” while adhering to legal frameworks. This balance, he argued, ensures decentralization without sacrificing regulatory protections. “Regulation should evolve to support this balance, not suppress it,” he added, reflecting Kraken’s stance on the need for adaptive compliance [1].

The tokenization race extends beyond Kraken. Competitor eToro plans to tokenize 100 U.S. stocks on Ethereum, contrasting with Kraken’s Solana-based approach. Meanwhile, Ethereum-aligned groups are engaging with regulators to establish standards for tokenized securities. On July 21, industry representatives met with the Securities and Exchange Commission to address how onchain technology can align with traditional regulatory requirements. This collaboration highlights the broader challenge of integrating innovation with existing oversight [1].

Greenberg’s comments align with a growing industry consensus that tokenization’s endgame requires more than technical replication. By prioritizing programmability and global access, platforms like Kraken aim to redefine financial participation. However, the success of these efforts will depend on regulatory clarity and the ability to balance decentralization with compliance—a dynamic that remains a key focus for the sector.

Source: [1] ‘Wall Street on a blockchain’ isn’t tokenization endgame: Kraken exec (https://cointelegraph.com/news/kraken-exec-tokenized-equities-wall-street-blockchain?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)