Crypto exchange Kraken is launching what it calls the first regulated perpetual futures contracts based on tokenized stocks, the firm told CoinDesk.
Available to qualified non-U.S. users in more than 110 countries, the products track digital versions of major U.S. stocks, indices and a gold ETF built on the tokenized stock offering of xStocks, which Kraken acquired in December.
The first listings include tokenized versions of the S&P 500, Nasdaq 100, Apple, Nvidia, Tesla and SPDR’s gold ETF (GLD), the firm said.
Kraken’s launch is significant because perpetuals trading has seen rapid growth, dominating crypto derivatives trading. Blockchain-based decentralized exchanges processed over $600 billion in perps trading volume in January, with Hyperliquid claiming the largest market share with $200 billion in monthly volume, data from The Block shows.
Unlike traditional futures contracts, perps do not expire and trade 24/7, allowing users to trade with high leverage. Investors favor them for continuous access, capital efficiency and the ability to take long or short positions at any time.
With Kraken’s move, that structure has now been extended to other asset classes such as e.g. shares. The underlying xStocks tokens are fully collateralized and backed 1:1 by the referenced assets, according to the company. It provides a price anchor even when US stock exchanges are closed. The tokenized shares are traded around the clock and support a leverage of up to 20x.
“This is what it looks like when traditional markets rebuild into a crypto-native, always-on world, not a moment too soon given the volatility that all markets exhibit,” Mark Greenberg, Kraken’s global head of consumer, said in a statement.
“Regulated tokenized stocks like perpetual futures represent a new chapter for global capital markets, one where stocks, indices and commodities are traded 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 selection with more tokenized stocks and ETFs in the coming months.
Rival tokenization firm Ondo Finance also announced plans to launch perps trading of its tokenized shares earlier this month.
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