Kraken Meets SEC Crypto Task Force to Discuss Asset Tokenization

Kraken has held talks with the US Securities and Exchange Commission (SEC) over its plans to expand into tokenized markets, highlighting rising scrutiny of one of the fastest-growing corners of ￰0￱ Takeaways: Kraken met with the SEC to discuss regulatory frameworks for its tokenized trading ￰1￱ are pressing for stricter oversight of tokenized stocks, citing weak investor ￰2￱ stock markets remain small at $360M but could reach $1.3T if adoption accelerates. A memorandum filed Monday showed SEC staff met with four representatives from Kraken’s parent company Payward, its subsidiary Kraken Securities, and two lawyers from Wilmer Cutler Pickering Hale and Dorr ￰3￱ agenda included the framework for a tokenized trading system, regulatory requirements for its operation, and the broader benefits of asset ￰4￱ Pushes SEC to Tighten Oversight of Tokenized Stocks The meeting comes as traditional exchange groups and global regulators push the SEC to tighten oversight of tokenized stocks, warning that investor protections common in regulated markets are ￰5￱ conventional equities, tokenized stocks can be traded around the clock and often fall outside the same disclosure and reporting ￰6￱ announced its tokenized stock service on May 22, allowing ￰7￱ to trade ￰8￱ 24/7.

Rival platform Robinhood launched a similar product in the European Union on June ￰9￱ followed up Wednesday by expanding its tokenized stock offering to the Tron ￰10￱ met w/ SEC Crypto Task force today to discuss tokenization of traditional assets… Included the legal & regulatory framework for operating a tokenized trading system in the *US*. It’s ￰11￱ — Nate Geraci (@NateGeraci) August 25, 2025 The market remains small but is attracting ￰12￱ to RWA. xyz, the total value of tokenized stocks stands at $360 million, down 11% over the past month, yet this still represents only 1.35% of the $26.5 billion in tokenized real-world assets currently ￰13￱ Research has projected the sector could reach more than $1.3 trillion if even 1% of the global equities market is ￰14￱ is betting on that growth.

A recent survey by the exchange found that 65% of ￰15￱ active in both equities and crypto believe digital assets will outperform stocks over the next ￰16￱ Real-World Assets May Unlock $400T TradFi Market In a recent research, Web3 digital property firm Animoca Brands said that tokenization of RWAs could unlock a $400 trillion traditional finance ￰17￱ researchers Andrew Ho and Ming Ruan said the global market for private credit, treasury debt, commodities, stocks, alternative funds, and bonds represents a vast runway for growth. “The estimated $400 trillion addressable TradFi market underscores the potential growth runway for RWA tokenization,” they wrote.

Meanwhile, according to the 2025 Skynet RWA Security Report, the market for tokenized RWAs could grow to $16 trillion by ￰18￱ ￰19￱ alone are projected to reach $4.2 billion this year, with short-term government bonds driving most of the ￰20￱ interest is accelerating, with major banks, asset managers, and blockchain-native firms exploring tokenization for yield and liquidity ￰21￱ highlighted emerging use cases across private credit, trade finance, and money market funds, noting that regulatory frameworks in Hong Kong, Singapore, and the ￰22￱ further support ￰23￱ report also flagged key hurdles, including thin secondary market liquidity, inconsistent legal treatment across jurisdictions, and the absence of standardized risk controls.