Kraken opens more than 7,000 US stocks to European investors

Access to US markets is expanding for investors from the European Economic Area. On August 18, Kraken announced the opening of more than 7,000 US-listed stocks to its eligible customers. The offer also brings together more than 700 xStocks and more than 600 crypto-assets in the same regulated account. This development is part of its MiFID approval. It brings together traditional equities, tokenized securities and digital assets, while retaining their distinct regulatory frameworks for the European investors concerned.

Kraken expands access to US stocks

Eligible EEA customers can now trade over 7,000 US stocks from Kraken Pro, on desktop or mobile. Affected clients do not pay any trading commissions on these transactions. However, other fees may apply and certain restrictions remain linked to the country, the account or the products available. The offer therefore targets European users meeting the planned conditions.

This new offer announced Tuesday also adds more than 700 xStocks, tokenized American stocks guaranteed 1 to 1 by the underlying securities. Investors can thus find similar exposures in two different forms. Traditional stocks operate with a regulated brokerage infrastructure. xStocks are based on blockchain tokens backed by corresponding shares.

Mark Greenberg, Payward’s Chief Commercial Officer and Head of Payward Services, highlights that this launch allows investors to choose between traditional stocks and tokenized representations of the same asset, without moving their capital or changing platforms:

This launch eliminates the artificial distinction between traditional and tokenized formats of the same asset, and through the coexistence of US-listed equities and xStocks within the same regulated account, clients can choose how they access the same underlying exposure (whether through traditional equities or tokenized representation) without moving capital or changing platforms.

Mark Greenberg, Payward Chief Commercial Officer and Head of Payward Services.

A launch placed under the MiFID framework

Kraken offers these stock services through Payward Europe Digital Solutions (CY) Limited. This investment company based in Cyprus has a MiFID license nᵒ 342/17. It reports to the Cyprus Securities and Exchange Commission, CySEC. The system thus distinguishes services linked to securities from activities relating to crypto-assets.

This regulatory separation is also part of the MiCA regulation for services related to digital assets. Identifying the responsible entity remains important. The European Securities and Markets Authority (ESMA) has recalled that unlicensed providers must enter into an orderly liquidation after the end of the MiCA transitional period on July 1. The launch of actions is based, for its part, on the MiFID framework applicable to the service.

For eligible users, Kraken brings together multiple instruments into a single regulated environment. American stocks remain linked to classic brokerage mechanisms. In particular, they monitor market hours, settlement processes and associated shareholder protections. xStocks adopt a different structure, with tokens able to be transferred to certain self-custodial wallets and traded when public markets are closed.

xStocks bring stocks and digital assets together

Kraken is also developing the xStocks model beyond already listed companies. The platform plans in particular to distribute tokenized allocations linked to new IPOs. Eligible customers may submit non-binding expressions of interest. Once the offering begins on the market, the allocated shares can then take a tokenized form.

This development comes as several platforms bring together digital assets and traditional financial products. Binance propose for its part, access to more than 7,000 American stocks and ETFs to certain non-American clients. The company is also planning tokenized stocks called bStocks. Coinbase also announced tokenized U.S. stocks, backed 1:1 by the underlying securities, for eligible customers outside the United States.

Coinbase previously opened access to traditional US stocks and ETFs to eligible US customers. Its offering brought together more than 8,000 securities in a separate brokerage structure. It also allowed 24 hours a day, five days a week transactions as well as split purchases. At the same time, the tokenized stock market is attracting more attention from regulators.

A tokenized market under surveillance

The distributed value of the tokenized stock market reached approximately $1.4 billion in May. The SEC was then studying a framework potential for stock trading on blockchain. Discussions include custody, shareholder rights, liquidity and settlement. These elements accompany the development of new market infrastructures.

For eligible European investors, Kraken therefore offers several routes to access the American markets in the same environment. Classic stocks retain their brokerage operation, while xStocks introduce a tokenized representation of securities. Crypto-assets remain governed by their own regulatory system. This organization distinguishes the instruments while bringing them together in the same interface.

However, the conditions of access remain linked to eligibility, account, location and the products concerned. Fees other than trading commissions may also apply. Investors should therefore consider these parameters before using the different instruments available. The service does not remove differences between legal and financial structures of assets.

The launch of Kraken thus adds a new offering to financial services accessible in the EEA. As platforms combine stocks, ETFs, xStocks and cryptoassets, their models evolve alongside European and American rules. The development of tokenized securities also maintains focus on custody, liquidity, settlement and investor rights. For EEA investors, the opening of more than 7,000 American stocks marks a new stage in this convergence between traditional finance and blockchain. Ultimately, its evolution will depend above all on the European framework and access conditions.