Kraken, a major cryptocurrency exchange, has launched a phased national rollout of commission-free trading for over 11,000 U.S.-listed stocks and exchange-traded funds (ETFs) which marks a significant move into traditional financial markets.
According to Reuters, this move comes as Kraken tries to expand its company outside crypto, leveraging on favourable regulatory reforms in the United States under President Donald Trump's administration, which promised a more industry-friendly environment for crypto firms.
Investor sentiment across both traditional and cryptocurrency markets took a major hit following the announcement of the implementation of reciprocal import tariffs by U.S. President Donald Trump on 2 April.
Kraken’s move into traditional stock trading follows the S&P 500’s record $5 trillion drop in market value over two days, surpassing the $3.3 trillion decline during the COVID-19 pandemic’s first wave.
Arjun Sethi, co-CEO of Kraken, stated that the company's move into equities is a logical progression, setting the stage for asset tokenization. He emphasized the vision of a "borderless" trading future, built on blockchain infrastructure, according to Reuters.
Starting Monday, Kraken users in select U.S. states, including New Jersey, Connecticut, Wyoming, and Oklahoma, will be able to trade stocks and ETFs. The company plans to gradually expand this offering to other states and internationally, with a focus on markets like the UK, Europe, and Australia, Reuters reported.
Oppenheimer analyst Owen Lau told Reuters that Kraken's recent move is a step towards becoming a full-service platform offering both traditional finance (TradFi) and cryptocurrency services. Lau also stated that the growth could push the tokenization of established asset classes via blockchain technology.
The launch of commission-free trading is a component of Kraken's larger plan to combine bitcoin and traditional financial services which is aligned with the growing trend of cryptocurrency companies diversifying their service lines. The recent $1.5 billion acquisition of NinjaTrader, a retail futures trading platform demonstrates the company's aims to improve its position in both traditional and digital finance.
Sethi emphasized that as the crypto trading landscape evolves, the increasing need for smooth, round-the-clock global trading access is driving the development of crypto as the fundamental infrastructure for trading a variety of asset classes such as currencies, commodities and stocks.
