Kraken expands bridge between DeFi and traditional market with tokenized stocks

Sao Paulo, 12 June 2024The exchange of cryptocurrenciesKrakenThis week we announced two initiatives that strengthen the bridge between the traditional financial market (TradFi) and the decentralized universe (DeFi).The Future of European Actionand also theXStocksThe measure comes at a time when global regulators are increasingly discussing the integration between these two ecosystems.

The battle for legitimacy: Kraken wants to attract investors beyond the crypto niche

In the last ten days, Kraken has carried out two strategic moves to position itself as a bridge between the traditional market and DeFi.expanded its offer of future European shares, allowing Brazilian investors to negotiate future contracts from companies like Nestlé and LVMH without the need to open accounts at international brokers.XStocksA platform that tokens shares of giants like Tesla and Apple, allowing them to be traded directly in cryptocurrencies.

This is not the case, according to data from theCoinTribuneKraken has recorded a 42% increase in traditional asset trading volume on its platform over the past three months, driven by rising U.S. interest rates and the pursuit of diversification in volatile markets. “Tokenization of stocks is a natural step towards mass adoption,” said an unidentified analyst. “Brazilian investors, accustomed to crypto volatility, can now access stocks in a more practical way, without the bureaucracy of foreign brokers.”

Stock tokenization in Brazil: still a distant dream?

As Kraken advances in Europe, the Brazilian market still faces regulatory barriers to stock tokenization.The Securities Commission (CVM)“Brazil has the potential to lead in Latin America, but without regulation, companies like Kraken have no incentive to enter here,” he said.by Ricardo RochmanProfessor of Finance of the Getúlio Vargas Foundation (FGV).

Meanwhile, the Brazilian market is moving.$1.2 billion in cryptocurrenciesAccording to aby ANBIMAThe arrival of solutions like xStocks could attract investors who seek to diversify beyond Bitcoin and Ethereum, but crumble in the lack of regulated assets.by Fernando UlrichEconomist and author of books on crypto.

Market impact: what to expect in the coming months?

The move of Kraken could accelerate the adoption of hybrid solutions in Brazil, especially in a scenario of high interest rates and economic uncertainty.CoinTribuneThe exchange has more10 million global usersIn addition, tokenization of stocks can reduce brokerage costs and increase the liquidity of traditionally unliquid assets.

However, experts warn of risks. “Lack of regulation in Brazil can lead to fraud or mismanagement of tokenized assets,” he says.Daniel Goldberg“Investors should be cautious and demand transparency from platforms.”

The main issue is the competition.Securities.ioIt already offers tokenization of U.S. stock, and other global exchanges, such asBinance“Kraken is running to not lose space, but the game is still open,” Goldberg adds.

Conclusion: DeFi 2.0 or just another step?

While Brazil is still discussing regulation, solutions like xStocks and the European stock futures show that the future can be hybrid.

Meanwhile, foreign platforms like Kraken are moving forward, leaving the Brazilian market at a disadvantage.