Kraken Expands Beyond Crypto with Commission-Free Trading Launch

Kraken, a prominent cryptocurrency exchange, has launched commission-free trading for over 11,000 U.S.-listed stocks and ETFs, marking its expansion into traditional finance. This phased rollout begins in several U.S. states, including New Jersey and Connecticut, with plans to extend across more states and internationally to markets like the UK, Europe, and Australia. The move is supported by the Trump administration's pro-industry regulatory stance and reflects a broader trend of convergence between traditional and digital finance.

To facilitate this expansion, Kraken has established a new division called Kraken Securities, which will oversee the trading of traditional assets. The company has secured regulatory licenses in the UK and is awaiting approval from the U.S. Financial Industry Regulatory Authority (FINRA) for a broker-dealer license. This strategic move follows Kraken's $1.5 billion acquisition of retail futures platform NinjaTrader, underscoring its ambition to merge traditional and crypto financial services.

Kraken's foray into stock and ETF trading positions it against established commission-free platforms like Robinhood and Public.com. Analysts view this as a natural progression toward asset tokenization and a comprehensive trading platform. Kraken also plans to enter payment services, signaling broader ambitions across financial sectors.