Kraken, a renowned cryptocurrency exchange, has made a groundbreaking move by launching commission-free stock and exchange-traded fund (ETF) trading in the United States. This strategic expansion is facilitated through the establishment of a dedicated securities division known as Kraken Securities, marking the company’s foray into traditional finance.
According to a recent blog post by Kraken, U.S.-based clients in select states, including New Jersey, Connecticut, Wyoming, and Alabama, can now access over 11,000 U.S.-listed stocks and ETFs directly from their Kraken accounts. This initial rollout will be followed by a phased expansion to include clients in additional states in the near future. The integration of equities into Kraken’s platform is a deliberate effort to merge traditional assets with digital assets, providing clients with a comprehensive portfolio management experience.
Kraken Securities offers a range of features to enhance the trading experience for users, including fractional trading, which allows investors to purchase fractional shares of high-priced stocks. Additionally, users can seamlessly reinvest funds across stocks or cryptocurrencies after a sale, eliminating the need for multiple platforms and streamlining the investment process. As a FINRA-regulated entity in the U.S., Kraken Securities has also obtained regulatory approval in the U.K., highlighting its commitment to compliance and global expansion.
Arjun Sethi, Co-CEO of Kraken, emphasized the company’s vision of leveraging cryptocurrency as a foundation for trading across various asset classes. By expanding into equities, Kraken aims to pave the way for the tokenization of assets and drive innovation in the financial industry. With plans to extend stock and ETF trading access to more U.S. states and international markets such as the U.K., Europe, and Australia, Kraken is poised to lead the shift towards borderless, 24/7 trading in both traditional and digital asset classes.
In a significant development earlier this month, the U.S. Securities and Exchange Commission (SEC) dropped charges against Kraken, ConsenSys, and Cumberland DRW. This decision, influenced by new leadership under the Trump administration, reflects a positive shift towards broader adoption of cryptocurrencies in the U.S. Ripple, another prominent player in the crypto industry, has agreed to settle its SEC civil case by paying a $50 million penalty, indicating ongoing regulatory developments in the sector.
Kraken’s successful resolution of the SEC charges underscores the company’s commitment to operating within regulatory frameworks and upholding industry standards. By offering commission-free trading for stocks and ETFs, Kraken is not only expanding its service offerings but also solidifying its position as a leader in the evolving landscape of digital and traditional asset trading. As the financial industry continues to evolve, Kraken’s innovative approach sets the stage for a new era of seamless and integrated investment opportunities for clients worldwide.