Commission-Free Trading of American Equities and ETFs Is Now Available on Kraken

This major development heralds the integration of digital assets into a unified trading platform, marking a dramatic departure from conventional financial services.

American equities and exchange-traded funds (ETFs) are now available for trading commission-free on Kraken, the cryptocurrency exchange announced on Friday.

The major development sees the integration of digital assets into a unified trading platform, a dramatic departure from conventional financial services.

Kraken introduced the new trading service on April 14 through a San Francisco-based exchange with a focus on users in specific U.S. states. Expanding its trading capabilities, Kraken announced access to more than 11,000 stocks and ETFs, transforming it into an all-in-one trading platform.

The company's move comes quickly following the U.S. implementation of favorable cryptocurrency regulations, facilitating Kraken's goal to merge cryptocurrency with Wall Street.

“We’re focused on providing our clients with the best, most convenient trading options available,” said Arjun Sethi, co-CEO of Kraken. “They want 24/7 global access to diverse assets and the ability to seamlessly manage their entire portfolio—crypto and equities—in one place.”

The users can now view their crypto and stock and ETF accounts together on the platform, matching the functionality of trading platforms like Robinhood.

A Strategic Leap Into Traditional Markets

The equity market entry by Kraken serves as a strategic move to transform current financial structures. Alpaca operates as the licensed broker-dealer which enables the exchange to offer stock and ETF trading services. The partnership with Alpaca ensures compliance with FINRA regulations, providing users with confidence in the platform's legitimacy.

In its expansion aspirations, Kraken has added three new states—New Jersey, Connecticut, and Wyoming—to its equity trading platform. The newly formed bitcoin-focused FINRA-regulated firm, Kraken Securities, will also be handling the stocks.

Kraken has organized this structure to demonstrate its commitment to open and honest regulatory requirements.

Another exceptional capability of the platform is fractional trading. The trading interface allows investors to purchase fractional shares of more than fifty percent of the available stocks, including Apple and Tesla stocks. The system broadens investment access for both members of the crypto community and conventional investors.

The timing of Kraken's move is noteworthy. The S&P 500 recently lost $5 trillion from its market capitalization, highlighting instability in traditional markets, according to Yahoo Finance. Kraken is offering commission-free trading as an incentive to investors seeking to build diverse portfolios cost-effectively.

Kraken Expands Globally with NinjaTrader Deal

Kraken has also established a presence beyond U.S. borders. The exchange plans to expand its business operations by targeting markets across the UK and Europe, as well as Australia. With a focus on expanding its operations globally, Kraken aims to build a unified financial system that integrates cryptocurrency with traditional stock markets.

The $1.5 billion acquisition of NinjaTrader, a futures trading platform, further hints at Kraken's broader ambitions, according to The Block. The biggest crypto-TradFi merger to date showcases Kraken's dedication to merging traditional financial systems with decentralized finance.

Tokenization stands as one of the upcoming developments. The blockchain industry has set the goal of managing stocks on-chain in the future, and Sethi mentioned his team is working towards this objective.

“Expanding into equities sets the stage for asset tokenization,” Sethi added. The integration of blockchain technology would transform investor relations with conventional markets due to its transparent properties.

The Kraken Pro app, along with web and mobile platforms, will allow users to trade various assets through its multi-asset support. Through its platform, users can monitor and control their assets, including cash and stablecoins, as well as crypto and equities, simultaneously.

This shift from the crypto exchange has generated significant attention throughout the financial sector. The industry views this development as evidence that crypto platforms are becoming complete financial hubs for users. Holding the 13th position as a centralized exchange by trading volume, Kraken is well-placed to disrupt the market following its entry into stock trading.