AMC slams tokenized stocks: Why Kraken and Bullish are betting big anyway
The recent episode of CoinDesk's Public Keys highlights significant developments in the tokenized equity sector, featuring insights from industry leaders at Kraken, SoFi, and Bullish. Kraken's parent company, Payward, is expanding its footprint through strategic partnerships with SoFi and the London Stock Exchange to facilitate 24/7 access to tokenized equities via xStocks. Simultaneously, Bullish Exchange has completed a $4.2 billion acquisition of the transfer agent Equiniti to bolster its infrastructure for tokenized-share trading. These trades are now being executed on a venue regulated by the Gibraltar Financial Services Commission (GFSC), marking a shift toward institutional-grade compliance for digital securities. The discussion underscores the evolving competition between various market models aiming to modernize traditional stock trading through blockchain technology. While these advancements promise increased liquidity and accessibility, they also face scrutiny from traditional market participants like AMC regarding the implications of tokenized stock offerings. This convergence of legacy financial infrastructure and distributed ledger technology represents a critical step in the broader adoption of real-world asset tokenization.
- Bullish acquired transfer agent Equiniti for $4.2 billion to support tokenized-share trading.
- Payward partnered with SoFi and the London Stock Exchange to advance xStocks equity tokenization.
- Bullish is executing tokenized-share trades on a venue regulated by the GFSC.
- Industry leaders are actively developing 24/7 market models for global tokenized equities.
Tokenized stocks are digital representations of traditional equity shares recorded on a blockchain, allowing for fractional ownership and near-instant settlement. These assets typically function by mirroring the price and performance of the underlying security while enabling trading outside of standard market hours. By utilizing blockchain infrastructure, issuers aim to reduce the reliance on traditional clearinghouses and intermediaries.