Cryptocurrency exchange Kraken has broadened its offerings by introducing US stock trading, marking its expansion into fiat-backed equities on the platform.
Following the launch, US-based clients in New Jersey, Connecticut, Wyoming, Oklahoma, Idaho, Iowa, Rhode Island, Kentucky, Alabama and the District of Columbia can trade stocks and ETFs directly within their Kraken account.
The company has stated that this marks the first phase of Kraken’s expansion into equities, with plans to extend availability to more states and international markets in the coming months.
Arjun Sethi, Kraken’s Co-CEO, commented: “Crypto isn’t just evolving, it’s becoming the backbone for trading across asset classes, such as equities, commodities and currencies. As demand for 24/7 global access grows, clients want a seamless, all-in-one trading experience.”
As noted by Sethi, this expansion means that the company’s services now range from stocks and cash to crypto and stablecoins. Kraken Securities, a FINRA-regulated division at Kraken, will be responsible for powering the division.
A noticeable trend
In recent months, more crypto exchanges have started expanding into stock trading. Crypto.com entered the stock market earlier this year, but it was Bitpanda that first crossed over into traditional finance.
Kraken’s move into equities is what Sethi described as a “natural step”. By offering stock trading, the digital asset company is likely aiming to attract a broader client base, which may also engage with its crypto offerings, effectively using equities as a funnel into digital assets.
This evolution presents a challenge for traditional financial institutions. As crypto platforms become one-stop shops for both stocks and crypto, they offer greater convenience, potentially capturing more market share.
Sethi concluded: “Expanding into equities is a natural step for us, and paves the way for the tokenisation of assets. The future of trading is borderless, always on and built on crypto rails – and Kraken will continue to lead this shift.”
