Kraken Pushes SEC to Revolutionize Financial Markets with Tokenization
Kraken just dropped a bombshell—they're publicly pressuring the SEC to embrace tokenization across traditional finance. No more waiting on the sidelines.
Why This Matters Now
Tokenization could slice through decades of financial red tape. Imagine stocks, bonds, and real estate trading 24/7 on blockchain rails—no more market hours, no more settlement delays. Kraken’s pushing for the infrastructure to make it happen, arguing it’ll boost liquidity and cut costs. (Because Wall Street definitely needs help with efficiency—said no one ever after 2008.)
What’s Really at Stake
This isn’t just about crypto firms getting a seat at the table. It’s about forcing legacy systems to evolve or get left behind. The SEC’s response will signal whether U.S. markets are ready to innovate—or content to watch from the rearview mirror.
Love it or hate it, tokenization’s knocking. And this time, it’s not asking nicely.
Tokenization gains momentum
The timing of this meeting reflects wider industry interest in real-world asset (RWA) tokenization.
Advocates argue that moving traditional instruments such as bonds or equities on-chain could expand access to investment opportunities and lower costs for market participants.
Interestingly, that argument has recently found support from US regulators.
At the Wyoming Blockchain Symposium, Federal Reserve Vice Chair for Supervision Michelle Bowman said:
“The speed and cost of wholesale payments, especially internationally, is a longstanding problem that tokenization could help to address. Banks of all sizes, including community banks, can benefit from efficiency gains that FLOW from asset tokenization.”
So, it is unsurprising that the RWA sector is rapidly expanding. Data from analytics firm RWA.xyz shows tokenized assets reached $26.5 billion in August, a month-on-month increase of more than 4%. Wallet addresses holding these instruments grew by 11% to about 367,000.
Considering this level of growth, industry experts expect the sector to scale significantly. The 2025 Skynet RWA Security Report estimates that tokenized RWAs could represent as much as $16 trillion in value by 2030.
