- Kraken launches commission-free stock and ETF trading for U.S. state clients
- Over 11,000 stocks are now on top of crypto on the Kraken platform.
- Expansions follow SEC dismissal of enforcement actions against exchange.
Kraken has introduced commission-free trading on more than 11,000 stocks and exchange-traded funds (ETFs), making its initial official entry into the equities market. The feature is available to users in some U.S. states and Washington, D.C.
The move represents a significant shift in Kraken’s business model as it introduces traditional financial assets onto its platform. Trading stock and ETFs is now offered to users in states like New Jersey, Connecticut and Alabama, with other regions planned for expansion.
Kraken Adds Equity Trading to Cryptocurrency Services
The newly launched trading feature offers exposure to stocks and ETFs listed on major exchanges such as the New York Stock Exchange (NYSE) and NASDAQ. The platform has been emphasizing commission-free trading, and customers in eligible states will no longer incur transaction charges.
Kraken co-CEO Arjun Sethi stated the company is responding to growing demand for “a seamless and all-in-one trading experience.” The rollout is intended to make it easier for retail and institutional clients to manage their investment portfolios across a variety of asset classes.
Although the current rollout is limited to a handful of U.S. jurisdictions, Kraken has made plans to roll out the stock trading feature to international users, including those in the U.K., Australia and parts of Europe.
Regulatory Conditions Support Kraken’s Expansion
Kraken’s move into the business of stock trading follows recent changes in the regulatory landscape in the U.S. The Securities and Exchange Commission (SEC) recently dismissed enforcement actions against Kraken and other exchanges, a sign of its increasingly cooperative attitude towards cryptocurrency firms venturing into traditional finance.
This regulatory climate has given the company room to diversify. Kraken in March acquired NinjaTrader, a futures trading platform, for $1.5 billion. The acquisition was seen as part of its strategy to broaden its suite of financial services beyond cryptocurrency trading. The addition of the equities feature backs this direction, which solidifies Kraken’s determination to be a multi-asset investment platform.
Activity rises as Kraken moves to broaden user base
Kraken has experienced a surge of usage of the platform, with over $1 billion in daily trading volume on all products, including stocks and ETF.s The firm is targeting a broader base of investors—those who wish to hold traditional and digital assets on a single platform.
The commission-free approach is part of a wider industry trend, where exchanges and brokerages try to reduce barriers to entry for retail investors. By removing commissions, Kraken can potentially attract users from both the mainstream finance world and the crypto community seeking easier access to diversified markets.
Kraken’s launch of equities in a small number of states signals a careful but cautious approach. The firm is likely sifting through myriad state-level regulation requirements as it plots a larger U.S. and global launch.
