Kraken’s Tokenized Equities Transcend Wall Street Replication to Boost Accessibility, Programmability

Kraken’s global head of its Consumer Business Unit, Mark Greenberg, has argued that tokenizing traditional financial assets should not merely replicate existing Wall Street systems on a blockchain. Speaking to Cointelegraph, Greenberg emphasized that tokenized equities must transcend the idea of “Wall Street on a blockchain” and instead focus on enhancing accessibility, programmability, and global reach. He stated that the goal is to create financial systems that feel as fluid and self-directed as the internet, enabling real-time access to global markets and tools previously reserved for institutional investors [1].

Greenberg criticized the narrow view held by many legacy institutions, asserting that tokenization is not simply about applying blockchain technology to traditional assets. Instead, he described it as an opportunity to rebuild financial infrastructure to be as programmable and accessible as cryptocurrencies. This approach, he argued, would allow developers to build applications on tokenized stocks—similar to stablecoins and decentralized finance (DeFi) protocols—while ensuring compliance with regulatory frameworks [1].

Kraken’s recent launch of xStocks, a product enabling trading in tokenized equities for over 60 companies including Netflix, Meta, and Coinbase, exemplifies this vision. Partnering with Backed Finance, Kraken deployed xStocks on its platform, Bybit, and DeFi protocols on Solana. Greenberg highlighted that these systems are “permissionless and composable,” meaning they allow open participation and interoperability while adhering to legal standards. He stressed that regulation should evolve to support this balance between decentralization and compliance rather than hinder it [1].

The push to tokenize equities is gaining momentum across the industry. While Kraken leverages Solana, eToro announced plans to tokenize 100 U.S. stocks on Ethereum. Meanwhile, Ethereum-aligned groups are engaging with regulators like the U.S. Securities and Exchange Commission (SEC) to establish standards for tokenized securities. A July 21 meeting between these groups and the SEC aimed to bridge onchain technology with traditional regulatory requirements, reflecting the sector’s growing alignment with compliance expectations [1].

Greenberg’s remarks underscore a broader shift in how blockchain technology is being applied to traditional finance. By prioritizing programmability and global accessibility, Kraken and other platforms aim to redefine financial markets, enabling retail investors and developers to interact with assets in innovative ways. However, the success of these initiatives will depend on navigating regulatory complexities while maintaining the core principles of decentralization and innovation [1].

Sources: [1] ‘Wall Street on a blockchain’ isn’t tokenization endgame: Kraken exec (https://cointelegraph.com/news/kraken-exec-tokenized-equities-wall-street-blockchain)