Cryptocurrency exchange Kraken is launching what it calls the first regulated perpetual futures contract based on tokenized stocks, the company told CoinDesk.
The product, available to eligible non-U.S. users in more than 110 countries, tracks digital versions of major U.S. stocks, indexes and gold ETFs, and builds on xStocks’ tokenized stock offering, which Kraken acquired in December.
The company said the initial listing will include tokenized versions of the S&P 500, Nasdaq 100, Apple, Nvidia, Tesla, and SPDR gold ETFs (GLD).
Kraken’s launch is significant as perpetual trading is rapidly growing and dominating crypto derivatives trading. According to data from The Block, blockchain-based decentralized exchanges processed over $600 billion in PERP trading volume in January, with HyperLiquid claiming the largest market share with $200 billion in monthly trading volume.
Unlike traditional futures contracts, PERP has no expiration date and can be traded 24/7, allowing users to trade with high leverage. Investors like the company for its continued access, capital efficiency, and ability to take long or short positions at any time.
Kraken’s move allows the structure to be extended to other asset classes, such as equities. The company says the underlying xStocks tokens are fully collateralized and backed 1:1 by reference assets. This provides a price anchor even when US exchanges are closed. Tokenized stocks trade around the clock and support up to 20x leverage.
“This is what traditional markets will look like as they restructure for a crypto-native, always-on world. Given the volatility all markets are exhibiting, it’s never too early,” Mark Greenberg, global head of consumer at Kraken, said in a statement.
“Regulated tokenized equities as perpetual futures represent a new chapter in global capital markets, where stocks, indices and products can be traded through tokenization with the same speed, accessibility and flexibility as cryptocurrencies, offering a more robust risk management experience,” he added.
Kraken said it plans to further expand its lineup of tokenized stocks and ETFs in the coming months.
Rival tokenization company Ondo Finance also announced plans earlier this month to begin purpurs trading using its own tokenized shares.
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