Kraken announced plans to open access to private markets and tokenized products for retail investors. The move, aimed at users outside the U.S., could transform access to pre-IPO and tokenized securities and is linked to major corporate developments.
Content and Scope of the Offering
Kraken will expand its offerings with two core components:
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Perpetual contracts targeted at the retail sector.
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Tokenized shares of U.S. companies (xStocks) for investors outside the U.S.
The perpetuals will include integrated risk management tools, such as stop-loss orders, margin alerts, and mobile support. Initially, they will support USD, with other currencies planned later.
The xStocks will allow continuous trading of companies like Apple and Tesla. The offering is already operational in the EU..
Risks, Regulation, and Corporate Strategy
The expansion aligns with Kraken’s strategic initiatives. The firm is planning a potential IPO in 2026 with a target valuation of approximately $15 billion and is reportedly seeking a pre-IPO funding round of around $500 million. The public timeline depends on market conditions and regulatory approvals, particularly from the SEC. Some analysts project a debut in the first quarter of 2026, although this estimate remains hypothetical and subject to change.
The move fits a broader trend where crypto platforms and traditional players explore tokenization of securities and retail access to private markets. At the same time, concerns arise over risks associated with democratizing these markets.
The initiative facilitates adoption of alternative products, but introduces challenges for investor protection. Key risks highlighted in the reports include:
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Illiquidity: difficulty in selling pre-IPO or tokenized holdings.
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Fraud and aggressive trading practices: regulatory examples include cases involving tens of millions, such as a notable $70 million investigation.
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Volatility and leverage: perpetuals can amplify losses during sudden market movements.
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Regulatory uncertainty: SEC approvals and international oversight affect timing and scope.
Experts have warned of potential systemic risks if retail capital enters illiquid assets en masse, while executives defend the opening.
“Democratizing alternative investment is one of our firm’s top priorities,”
said Jenny Johnson, CEO of Franklin Templeton.
Kraken’s offering could accelerate retail adoption of tokenized private markets. Its effective implementation will depend on technical execution, risk management practices, and regulatory decisions. The company anticipates a potential IPO in 2026, subject to market conditions and approvals.
