Kraken, a well-known crypto trading firm, has recently expanded its services into traditional finance by offering access to over 11,000 US-listed stocks and exchange-traded funds (ETFs). The company announced on April 14 that users can now trade equities commission-free through Kraken Securities LLC, a newly established FINRA-regulated division of the exchange. This service is currently available to residents in ten US jurisdictions, including New Jersey, Connecticut, Wyoming, Oklahoma, Idaho, Iowa, Rhode Island, Kentucky, Alabama, and Washington, D.C., with plans to expand to more states in the near future. Additionally, Kraken has its sights set on global markets such as the UK, Europe, and Australia.
The move to incorporate traditional financial products into its platform aligns with Kraken’s broader vision of bridging the gap between traditional and digital finance. By offering access to stocks, ETFs, crypto, stablecoins, and cash all on one platform, Kraken aims to make it easier for users to diversify their portfolios without having to leave the ecosystem. Co-CEO of Kraken, Arjun Sethi, sees this expansion into equities as a natural progression that will pave the way for future innovation. He believes that blockchain technology will enable a borderless, continuous, and asset-driven trading experience, and that crypto will serve as the backbone for trading across various asset classes in the future.
Kraken’s foray into stock trading comes on the heels of its recent $1.5 billion acquisition of retail futures trading platform NinjaTrader and reports of plans to raise $1 billion in debt in preparation for a potential initial public offering. These strategic moves highlight the exchange’s ambitious goal of becoming a key player in the convergence of traditional finance and crypto. With this expansion, Kraken now competes directly with other platforms like Crypto.com, which also offers commission-free trading for stocks and ETFs in the US.
Kraken’s expansion into traditional finance represents a significant milestone for the company as it seeks to establish itself as a major player in the intersection of traditional financial markets and digital assets. By offering users access to a wide range of investment opportunities, including stocks, ETFs, and cryptocurrencies, Kraken aims to provide a seamless and comprehensive trading experience for its customers. The introduction of commission-free trading for equities further enhances the appeal of the platform and positions Kraken as a formidable competitor in the rapidly evolving landscape of digital finance. As the demand for 24/7 global access to financial markets continues to grow, Kraken’s innovative approach to integrating traditional and digital assets could pave the way for a new era of borderless trading across various asset classes.
