Kraken uses Solana to tokenize U.S. stocks and ETFs for non-U.S. investors, bridging traditional finance with crypto innovation.
Kraken is moving forward with its bold plans to introduce tokenized US stocks to foreign investors.
The exchange has established several agreements to achieve its goal, but a relationship with Solana has caused SOL prices to soar.
Kraken Eyes Launches Tokenized US Stocks On Solana
Kraken, a cryptocurrency exchange in the US, has announced ambitions to offer tokenized US stocks in a few international markets.
The exchange will provide non-US investors access to tokenized copies of US stocks, including Apple, Nvidia, and Tesla, the business announced.
The exchange’s new tokenized stock offering, stocks, depends on essential industry alliances.
According to the statement, the exchange will introduce xStockFi on Solana, and the exchange may eventually expand to other blockchains.
“With BackedFi and Kraken, tokenized US equities will soon trade on Solana – fast, borderless, and composable.”
Furthermore, noting its prior experience with tokenized stocks and ETFs, Kraken is enlisting BackedFi for the next product launch.
To begin, StockFi will provide more than 50 stocks and ETFs at launch, but details of a commercial roll-out are still being worked out.
Arjun Sethi, co-CEO of Kraken, revealed that the upcoming tokenized stock offering will be more than a tradeable one.
According to Sethi, the product will be interoperable across the CeFi and DeFi ecosystems, transferable, and collateralizable.
The statement comes after Kraken secured a European license for cryptocurrency derivatives in the middle of the week.
Rumors of a token launch and a possible initial public offering still follow the US cryptocurrency exchange.
SOL Price Surges After Announcement
Since Kraken’s announcement, the price of Solana has skyrocketed, with SOL currently trading at $178.
As the daily trading volume reflects strong emotions, SOL is currently up around 8% from the previous day.
A Solana fall to $140 is becoming less likely due to the current price increase as institutional interest reaches frantic heights.
Despite Solana’s 4% increase over the past week, investors might see a positive picture on the 30-day chart.
Over the past month, SOL’s price has increased by an astounding 23.1%, exceeding its competitors.
The price increase is not a fad since Solana is still trying to attract institutional attention.
To join Societe Generale’s stablecoin debut on the network, OKX released xBTC on Solana earlier in the day.