Kraken, one of the world’s largest crypto exchanges, has met with the US Securities and Exchange Commission’s (SEC) Crypto Task Force to discuss the future of tokenized trading systems. The closed-door meeting involved representatives from Payward, Inc., Kraken Securities, and legal counsel from WilmerHale. The agenda focused on the regulatory framework, legal obligations, and potential benefits of tokenizing traditional assets.

The timing of the talks is crucial, as both regulators and traditional exchange groups are pushing for stricter oversight of tokenized stocks. Unlike traditional markets, tokenized stocks can be traded 24/7 and often lack investor protection safeguards. Despite regulatory pressure, platforms like Kraken and Robinhood are moving quickly to expand their tokenized services.

Kraken first launched its tokenized stock offering on May 22, allowing non-US investors to buy and trade US equities around the clock. Robinhood followed suit on June 30, introducing tokenized US stocks in the European Union. Just this week, Kraken expanded its service further by integrating tokenized stocks on the Tron blockchain.

Although the market remains small, interest is growing. Data from RWA.xyz shows the current value of tokenized stocks at $360 million, down 11% in the last month, but still only 1.35% of the $26.5 billion worth of real-world assets already onchain. Research from Binance suggests the sector could explode into a trillion-dollar market if even 1% of global equities become tokenized.

A recent Kraken survey found that 65% of US investors who own both crypto and equities believe digital assets will outperform stocks over the next decade. Kraken’s consumer chief Mark Greenberg has said tokenized stocks should not simply replicate Wall Street, but instead offer accessibility, programmability, and global reach that traditional systems cannot match.