Kraken to Enable Crypto-Like Trading for Traditional Stocks

The new system will feature tokens called xStocks, which will operate on the Solana blockchain. Each token will represent a 1:1 equivalent of a real stock or ETF, and the system will be managed by Kraken’s partner, Backed Finance. Thanks to this structure, the value of each token will be closely aligned with the real-time price of the underlying asset.

For instance, if Apple shares are trading at $200 in traditional markets, the corresponding Apple xStock token will also hold a value of $200. Users will have the option to redeem their tokens for their full cash value, ensuring price stability and offering the convenience of holding these stocks in a digital format.

Global Rollout – U.S. Not Included (Yet)

Kraken’s offering will initially be available in Europe, Latin America, Africa, and Asia. Due to regulatory barriers, the United States market will not be included at this stage. However, the company is working closely with regulators to ensure full compliance. This collaborative approach is seen as a strategic move to avoid the legal challenges that similar products have faced in the past.

A New Era in Financial Accessibility

Kraken’s latest step showcases how blockchain technology can reshape traditional finance. With tokenized stocks, individuals will no longer be restricted by conventional market hours — they will be able to invest any day, any time. This presents a significant benefit, particularly for users in different time zones.

The introduction of this feature by Kraken opens up a more flexible and accessible investment path for both crypto and traditional investors. It marks another major development in the gradual merging of crypto markets and traditional equity trading, making the boundaries between them increasingly indistinct.

This content does not constitute investment advice. The markets involve high risk and it is important that you do your own research before making any investment decisions.

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In the world of cryptocurrency, the security concerns of millionaires are rapidly increasing. The data breach at Coinbase, in particular, has created a new sense of danger in the industry. Hackers obtained users’ names, addresses, ID photos, and account balances. Such information is sufficient for malicious actors to select targets. Those with significant crypto assets are now prioritizing not only their digital security but also their physical safety. 

As a result, crypto investors are hiring professional security teams to protect themselves and their families, just as they secure their cold wallets. Experts emphasize, “You must protect not only your portfolio but also your personal safety.” Indeed, owning millions of dollars’ worth of cryptocurrency comes with significant risks. 

Physical Attacks and Kidnapping Threats Become Reality 

The security issues in the crypto world are no longer confined to the online realm; they have now spilled into the physical world. The Coinbase data breach provided attackers with personal information, enabling them to target investors who could be attacked on the street or in front of their homes. 

For example, Ledger SAS founder David Balland was kidnapped along with his partner last January. Balland was seriously injured during the attack, and the incident caused significant ripples in the industry. Following this, the daughter and granddaughter of Paymium’s CEO were targeted for kidnapping in Paris. Although the plan failed, it heightened the industry’s security concerns. 

France’s Interior Minister intervened, announcing the establishment of a dedicated emergency police hotline for the crypto industry. Additionally, elite units were formed to provide security briefings and home protection assessments for industry executives, enabling faster and more effective responses to physical attacks. 

Crypto Companies and Investors Make Significant Security Investments 

Crypto firms are taking security risks very seriously. Coinbase spent $6.2 million on the security of its CEO, Brian Armstrong—an amount surpassing expenditures by JPMorgan, Goldman Sachs, and Nvidia during the same period. Other companies, such as Robinhood and Circle, have also allocated substantial budgets for their executives’ safety. 

Security measures are not limited to physical protection. Companies conduct real-time monitoring on social media and other digital platforms to prevent location leaks, making it harder for potential attackers to reach their targets. Additionally, comprehensive solutions such as armored vehicles, 24/7 protection, and threat assessments are offered to clients. Security firms like Infinite Risks International clean up the digital footprints of crypto investors and provide early warnings against potential threats. 

According to data recorded by prominent Bitcoin security advocate Jameson Lopp, more than 20 physical attacks have occurred worldwide this year. These incidents are not limited to Europe but are also happening in regions like the Americas and Asia. Kidnappings, extortions, and fraud cases are on the rise, forcing everyone in the industry to enhance both online and offline security measures. 

The crypto community is also reflecting security concerns in its events. For instance, the annual EthCC conference in Cannes implemented significantly stricter security measures this year compared to last year. French police, special forces, and private security firms collaborated to provide comprehensive protection at the event. 

However, despite these measures, some investors are avoiding travel to countries like France due to security risks. This situation underscores the magnitude of the global security challenges facing the industry. 

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Trader Matthew Hyland noted in a May 28 X post, “NVDA is surging; AI coins are quiet now, but don’t expect that to last.”

Nvidia’s Influence on AI Crypto Tokens

Artificial intelligence companies are running their AI models on Nvidia-made computer processors. With NVDA’s performance as a barometer of the market’s AI attitude, crypto traders view the stock price as a prediction of how AI tokens may move.

According to Google Finance, Nvidia has gained 22% over the previous five trading days to end May 28 at a record high of $1,140; the stock has had a year-to-date rise of around 137%.

With an 18% increase from Q4 2023 and a 262% increase from the year-ago quarter, Nvidia’s first-quarter revenue exceeded expert projections by around 5.6%.

Several of the biggest AI cryptocurrencies by market capitalization, meanwhile, have dropped during the past week instead of following Nvidia.

Based on CoinMarketCap, Render (RNDR), fetch.ai (FET), and SingularityNet (AGIX) lost 8.14%, 11.39%, and 11.19% over the previous seven days, respectively.

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Though AI crypto tokens are not following the increase, some traders think this may change amid the declining stock price of Nvidia.

“The moment NVDA starts to sell off, it will take all the other mega-cap tech names with it, at least for a couple of days,” anonymous crypto trader Triplexx said in a May 28 post. “Then whatever the attitude of crypto is, it will draw crypto with it no matter what. Get ready.”

Investment guru Lyn Alden pointed out on May 25 that among the few equities that have outperformed Bitcoin over the previous ten years is Nvidia.

According to trading site The Kobeissi Letter, a $10,000 investment in Nvidia in 1999 was “worth $25.3 million” as of May 24, one day earlier.

Over the next decade, the larger crypto community feels Nvidia won’t produce the same profits as Bitcoin.

Swan Bitcoin CEO Cory Klippsten said, “There is a near-zero chance of Nvidia outperforming Bitcoin over the next 10 years.”

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