Digital assets platform Kraken has recently made significant strides in expanding its offerings, strengthening its compliance framework, and aiding law enforcement in combating crypto-related crime.
These developments, announced in late June and early July 2025, underscore Kraken’s commitment to bridging traditional finance with the crypto ecosystem, enhancing platform security, and fostering trust within the industry.
Recently, Kraken announced the phased rollout of xStocks, a platform powered by Backed Finance, offering tokenized versions of over 60 U.S. stocks and exchange-traded funds (ETFs) to eligible non-U.S. clients.
This innovative service enables 24/5 trading of major equities like Apple, Tesla, Nvidia, and ETFs such as SPY, leveraging the Solana blockchain for its speed and cost-efficiency.
Each xStock is backed 1:1 by the underlying asset, held by a regulated third-party custodian, ensuring transparency and security.
The xStocks platform democratizes access to U.S. capital markets, allowing global investors to trade fractional shares with minimal barriers, such as low paperwork and no commissions on Kraken.
Unlike traditional equities, xStocks are transferable to self-custodial wallets and can be used as collateral in decentralized finance (DeFi) protocols like Jupiter and Raydium on Solana.
Kraken’s co-CEO, Arjun Sethi, emphasized the flexibility of xStocks, stating:
“People all over the world can own and use a share of a tokenized stock like they would use money.”
However, the platform is not available to users in the U.S., Canada, the U.K., the EU, or Australia due to regulatory restrictions, and tokenized stocks do not confer shareholder rights like voting.
This launch aligns with a broader trend of tokenizing real-world assets (RWAs), with platforms like Coinbase and Robinhood also exploring tokenized securities.
By integrating traditional finance with blockchain, Kraken is positioning itself at the forefront of a potential $18.9 trillion market by 2033.
On July 2, 2025, Kraken detailed its efforts to bolster its global compliance framework, emphasizing a scalable and resilient infrastructure to meet regulatory demands.
The exchange has invested heavily in people, processes, and systems to ensure a secure platform, particularly in sanctions compliance.
This initiative reflects Kraken’s goal to be the most trusted venue in the crypto industry, addressing the unpredictable nature of crypto markets and the lack of government compensation schemes in some jurisdictions.
Kraken’s compliance upgrades are designed to anticipate future regulatory requirements, ensuring the platform remains adaptable as the crypto sector evolves.
The exchange explicitly stated that it does not undertake efforts to artificially increase the value of crypto assets, prioritizing transparency and user protection.
This focus on compliance is critical as Kraken expands its offerings, such as xStocks, and navigates complex global regulations.
Kraken’s collaboration with the U.S. Secret Service (USSS) marked a significant milestone in combating crypto fraud.
On July 3, 2025, Kraken announced its role in a USSS investigation that led to the largest-ever crypto seizure, totaling approximately $225 million.
The investigation targeted a “pig butchering” scam, where fraudsters used social engineering to build trust with victims before defrauding them.
Kraken’s compliance and investigative teams provided real-time transaction and account information, identifying nearly 500 victims and supporting the seizure warrant.
David Zacks, Kraken’s Deputy Chief Compliance Officer, reaffirmed the exchange’s commitment to fighting fraud and ensuring a safe crypto ecosystem.
This collaboration highlights the importance of partnerships between crypto platforms and law enforcement to protect users and combat illicit activities.
Kraken’s recent initiatives demonstrate its multifaceted approach to advancing the crypto industry.
The xStocks platform bridges traditional and decentralized finance, offering global investors access to U.S. equities.
Enhanced sanctions compliance ensures regulatory adherence, while the fraud seizure higlights Kraken’s role in safeguarding the ecosystem.
As tokenized assets gain traction and regulatory landscapes evolve, Kraken’s efforts position it as a key player in shaping the future of traditional and decentralized finance.