- Kraken begins commission-free stock trading in 10 states, expanding beyond crypto to offer over 11,000 US-listed stocks and ETFs.
- Kraken’s unified platform now lets users trade crypto, stocks, and fiat in one app, boosting portfolio flexibility and user convenience.
- Kraken Securities gains FINRA regulation, positioning the firm for global equity expansion and possible IPO amid rising demand for integrated trading.
Kraken cryptocurrency exchange has announced a new feature, commission-free trading of over 11,000 US-listed stocks and exchange-traded funds(ETFs). The rollout is the first time the crypto exchange has branched out beyond the cryptocurrency trading market positioning it as a multi-asset trading company.
The initial offering is available in ten specific states of operation, including New Jersey, Connecticut, Wyoming, Oklahoma, Idaho, Iowa, Rhode Island, Kentucky, Alabama, and the District of Columbia. Kraken has unveiled its expansion strategy, which includes expanding throughout the United States and other countries, including the United Kingdom, Europe, and Australia.
The new equities service is delivered through Kraken Securities LLC, a division of Kraken regulated by the Financial Industry Regulatory Authority (FINRA). This will ensure that the firm can continue to offer a regulated space for traditional security trading while keeping the core digital asset services.
Unified Platform for Traditional and Digital Assets
Kraken’s update enables selected users to trade fiat and cryptocurrencies within the same interface. Clients can trade equities and products such as Bitcoin, Ethereum, fiat currencies, and stablecoins through Kraken apps, Kraken Pro mobile, and Kraken Pro web.
It reduces the need for multiple platforms for organizing different types of assets. Thus, buy-and-sell positions and portfolio rebalancing with capital between stocks and cryptocurrencies are possible with increased flexibility.
It also offers the feature of depositing U.S. dollars to purchase stocks and change the market conveniently. This move comes as the firm aims to consolidate all financial instruments under the same roof and regulation.
Some of the important trading attributes focus on flexibility and accessibility.
Some of the key products of the new equities offering include the ability to buy fractional shares, which is a consequence of some shares in equities being very expensive. This feature introduces such a system to enable small investors to invest in the big market with limited capital.
Another important feature is the ability to reapply proceeds after a sale. Investors can easily switch funds to other stocks or other forms of cryptocurrencies, providing liquidity and control of their assets.
They include compliance with the regulated framework to govern these services and ensure crypto exchange securities meets industry standards. This combination of crypto and Wall Street business hints at the firm’s mission to bridge decentralized and central finance.
Regulatory Compliance and Strategic Positioning
Kraken’s equities division expansion comes after the firm had legal setbacks with the U.S. Securities and Exchange Commission (SEC). The legal case was dismissed without fines or restraining orders, opening opportunities for exchange to expand business operations.
The timing of the equities launch is opportune, given the increasing industry trend towards integrated trading solutions. Through FINRA membership, crypto exchange obtains formal recognition in traditional financial markets and increases public trust.
However, crypto exchange’s entry into stock trading could be in preparation for its IPO in the future. The aggregations have also been made to understand the acquisitions and funding rounds for broader market engagements in case of favorable regulation in the U.S. The expansion is only the first step towards Kraken’s grand plan to add equities to its trading segment. The firm needs to broaden its access to the remaining states in the United States before venturing into other countries.
Kraken has over 300 tokens listed, and traditional equities marking itself as a hybrid exchange for old and new money. The offering might also form a base for further developments regarding other asset classes, tokenization and around-the-clock trading platforms.
