"Kraken introduces regulated tokenized equity perpetual futures, offering leveraged exposure to major US stock indexes, gold, & individual companies like N
**International News - Kraken Introduces Tokenized Equity Perpetual Futures**
San Francisco-based cryptocurrency exchange Kraken has unveiled trading of tokenized equity perpetual futures on its regulated derivatives platforms, catering to eligible non-US clients.
**Expanded Trading Opportunities**
The announcement on Tuesday revealed that these contracts offer leveraged exposure to major US stock indexes, gold, and individual companies such as Nvidia, Apple, and Tesla. The contracts are structured as perpetual futures, trading without expiry, and are available in over 110 countries.
**Regulated Tokenized Equity Perpetual Futures**
Kraken claims these products to be the first regulated tokenized equity perpetual futures listed on a derivatives venue. The contracts are built using the xStocks framework, which issues blockchain-based representations of publicly traded stocks and exchange-traded funds. Notably, the contracts reference tokenized equity benchmarks instead of directly holding the underlying shares.
**Leverage and Round-the-Clock Liquidity**
By wrapping traditional stock instruments in perpetual futures, Kraken aims to provide leverage and round-the-clock liquidity to equity exposure. The contracts support leverage of up to 20x.
**Future Developments**
Kraken plans to add more tokenized stock and ETF contracts in the coming months, subject to regulatory approval. Clearing and execution are handled through Kraken’s derivatives platform, and the products are not available to US clients.
**Expansion into Traditional Financial Markets**
The move by Kraken aligns with a broader trend among major US-founded crypto exchanges to extend beyond digital assets and offer exposure to traditional financial markets. The company's recent acquisitions, including the purchase of futures platform NinjaTrader and tokenization platform Magna, are reflective of this strategy.
**Competitor Moves**
Other exchanges, such as Gemini and Coinbase, have also entered the tokenized equities market, offering users extended trading hours beyond those of legacy exchanges. This move by Kraken is expected to further accelerate this growing market for tokenized equities.
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