Cryptocurrency exchange Kraken told CoinDesk it is launching what it calls the first regulated perpetual futures contract based on tokenized stocks.
The products, available to eligible non-U.S. users in more than 110 countries, track digital versions of major U.S. stocks, indices and gold ETFs, building on the xStocks tokenized stock offering Kraken acquired in December.
The first launches include tokenized versions of the S&P 500, Nasdaq 100, Apple, Nvidia, Tesla and the SPDR Gold ETF (GLD), the company said.
The launch of Kraken is important because perpetual contract trading is growing rapidly and dominates cryptocurrency derivatives trading. Data from The Block shows that blockchain-based decentralized exchanges processed more than $600 billion in Perps transaction volume in January, with Hyperliquid accounting for the largest market share, with a monthly transaction volume of $200 billion.
Unlike traditional futures contracts, perpetual contracts do not expire and can be traded 24/7, allowing users to trade with high leverage. Investors favor their constant access, capital efficiency, and ability to hold long or short positions at any time.
With Kraken’s move, the structure has now expanded to other asset classes such as equities. According to the company, the underlying xStocks token is fully collateralized and backed 1:1 by reference assets. This provides a pricing anchor even if U.S. exchanges are closed. Tokenized stocks are traded around the clock, supporting leverage up to 20x.
“This is what traditional markets will look like as they are rebuilt for a crypto-native, always-on world, and given the volatility all markets are exhibiting, it’s not too soon,” Mark Greenberg, global head of consumer at Kraken, said in a statement.
He added: “Regulated tokenized stocks as perpetual futures represent a new chapter in global capital markets, where stocks, indices and commodities can be traded with the same speed, accessibility and flexibility as tokenized cryptocurrencies, providing a more robust risk management experience.”
Kraken said it plans to expand its product lineup with more tokenized stocks and ETFs in the coming months.
Rival tokenization firm Ondo Finance also announced plans earlier this month to launch perpetual trading of tokenized shares.
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