Kraken co-CEO says tokenized equities won’t ‘open the floodgates’ for institutions overnight
The Block
Kraken co-CEO Arjun Sethi predicts that institutional adoption of tokenized equities will be a gradual, multi-year process rather than an immediate transformation.Summary
Kraken co-CEO Arjun Sethi stated that tokenized equities, which represent the next phase of digital assets, will not lead to immediate institutional adoption. Despite the success of Kraken's xStocks product, Sethi noted that banks and brokers are unlikely to overhaul their legacy collateral systems quickly. He estimates a five to 10-year transition period, with current demand driven primarily by international fintech firms rather than U.S. institutions. Looking forward, Kraken intends to expand into commodities and credit products while maintaining a focus on interoperable, non-walled garden infrastructure.
(Source：The Block)