Kraken lobbies SEC to integrate tokenization into financial markets

Kraken has opened a new round of dialogue with the US Securities and Exchange Commission’s (SEC) Crypto Task Force, focusing on how tokenization could be integrated into regulated financial markets.

An internal agency memo confirmed that the exchange met with the task force on Aug. 25 to present ideas on how tokenized trading systems might function under existing US law.

During the session, Kraken’s presentation outlined the architecture of such a system, explained the lifecycle of various transaction types, and examined the legal obligations tied to securities regulations.

The crypto exchange also pressed for clearer regulatory guidance, stressing that constructive oversight could encourage innovation while safeguarding investors.

The engagement follows the exchange’s recent launch of “xStocks,” a platform designed to issue tokenized versions of more than 50 US equities and exchange-traded funds.

The assets have been launched on Solana and the Binance-backed BSC blockchain, but are currently limited to offshore clients.

Tokenization gains momentum

The timing of this meeting reflects wider industry interest in real-world asset (RWA) tokenization.

Advocates argue that moving traditional instruments such as bonds or equities on-chain could expand access to investment opportunities and lower costs for market participants.

Interestingly, that argument has recently found support from US regulators.

At the Wyoming Blockchain Symposium, Federal Reserve Vice Chair for Supervision Michelle Bowman said:

“The speed and cost of wholesale payments, especially internationally, is a longstanding problem that tokenization could help to address. Banks of all sizes, including community banks, can benefit from efficiency gains that flow from asset tokenization.”

So, it is unsurprising that the RWA sector is rapidly expanding. Data from analytics firm RWA.xyz shows tokenized assets reached $26.5 billion in August, a month-on-month increase of more than 4%. Wallet addresses holding these instruments grew by 11% to about 367,000.

Considering this level of growth, industry experts expect the sector to scale significantly. The 2025 Skynet RWA Security Report estimates that tokenized RWAs could represent as much as $16 trillion in value by 2030.

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