Revolution in the financial sector: Kraken and Coinbase bring stocks on blockchain!

Revolution in the financial sector: Kraken and Coinbase bring stocks on blockchain!

The financial sector is poised for a potential revolution as major crypto platforms such as Kraken and Coinbase are working to introduce trading of tokenized stocks and securities based on blockchain technology. This development could fundamentally change the way investors trade. Loud Wall Street Online Both companies are in discussions with the US Securities and Exchange Commission (SEC) to obtain approval for this new trading approach.

Blockchain technology promises faster settlement compared to traditional market models, which often require trading times of T+1 or T+2. This offers several benefits for investors, including faster transactions, lower fees and the ability to trade around the clock.

Challenges and opportunities

While the benefits are clear, traditional shareholder rights, such as voting, could be lost. Kraken has already announced “xStocks”, a platform for Europe and other regions to trade tokenized stocks. Coinbase is now seeking SEC approval to become the first major platform in the US to offer tokenized stocks CVJ.ch reported. This request includes a no-action letter or the possibility of an exemption.

Tokenized stocks are digital tokens that represent traditional values, with investors holding a claim of ownership through the digital token rather than directly owning the paper. According to Coinbase CLO Paul Grewal, the benefits following SEC approval would be 24/7 trading, faster settlement and lower costs. There are currently no regulated tokenized equity products in the US, underscoring the need for such an offering.

Market development and regulatory aspects

However, critics raise challenges such as low liquidity in the secondary market and the lack of global regulatory standards. Kraken already offers tokenized stocks internationally, but without U.S. customers, while Coinbase relies on SEC approval to get around its lack of broker-dealer approval. This comes in a regulatory environment dominated by Trump-appointed SEC leadership, with cases against Coinbase, Binance and Kraken dropped and new rules being drafted in a task force.

A successful offering of tokenized stocks could position Coinbase to compete with established brokers and redefine digital stock trading in the US. If approved by the SEC, Coinbase could emerge as a market participant and pioneer in digital stock trading, giving a further boost to the entire industry.

In addition to these developments, the XRP project already offers tokenized US Treasury securities, giving institutional investors access to certain assets. These bonds are backed by the BlackRock USD Institutional Digital Liquidity Fund. Ripple emphasizes the benefits of onchain accessibility and changing the way you interact with tokenized assets.

The innovative strength in the area of ​​cryptocurrencies is becoming increasingly important. Projects like the Bitcoin Bull project combine Bitcoin and memecoins and offer opportunities for investors through price increases and airdrops. Investors also have the opportunity to achieve attractive returns through staking, which are currently an impressive 56% per year.