Crypto exchange Kraken is launching what it calls the first regulated perpetual futures contracts based on tokenized stocks, the company told CoinDesk.
The products, available to eligible non-US users in more than 110 countries, track digital versions of major US stocks, indices and a gold ETF, building on xStocks’ tokenized stock offering that Kraken acquired in December.
Initial listings include tokenized versions of the S&P 500, Nasdaq 100, Apple, Nvidia, Tesla and the SPDR Gold ETF (GLD), the company said.
The launch of Kraken is significant as perpetual trading has seen rapid growth, dominating crypto derivatives trading. Blockchain-based decentralized exchanges processed more than $600 billion in trading volume in January, with Hyperliquid claiming the largest market share with monthly volume of $200 billion, according to data from The Block.
Unlike traditional futures contracts, perps do not expire and trade 24/7 and allow users to trade with high leverage. Investors favor them for their seamless access, capital efficiency, and the ability to take long or short positions at any time.
With Kraken’s decision, this structure is now extended to other asset classes such as stocks. The underlying xStocks tokens are fully collateralized and backed 1:1 to the referenced assets, according to the company. This provides an anchor for prices even when U.S. exchanges are closed. Tokenized stocks trade 24 hours a day and support up to 20x leverage.
“This is what it will look like when traditional markets are rebuilt for a crypto-native, always-on world, which is not a moment too soon given the volatility all markets exhibit,” Mark Greenberg, global head of consumer affairs at Kraken, said in a statement.
“Tokenized stocks regulated as perpetual futures represent a new chapter for global capital markets, one in which stocks, indices and commodities trade with the same speed, accessibility and flexibility as crypto via tokenization, providing a more robust risk management experience,” he added.
Kraken said it plans to expand the lineup with more tokenized stocks and ETFs in the coming months.
Rival tokenization company Ondo Finance also announced plans earlier this month to launch perps trading with its tokenized stocks.
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