Kraken bets on tokenized stocks as BTC pulls back

Co-CEO of Kraken Arjun Sethi told Yahoo Finance that the crypto market is no different from traditional markets: when prices rise, euphoria and speculation dominate; when prices correct, the community is flooded with negativity. In his view, what really matters is not day-to-day price action, but the overall “slope” of Bitcoin’s multi‑year chart from the first few thousand dollars to current levels after multiple boom-and-bust cycles.

Kraken, which operates across Europe, the U.S., Canada, Australia, and other regions, is using this volatility as a backdrop to expand its product lineup. The exchange already offers hundreds of crypto assets, as well as U.S. stocks and ETFs.

Sethi puts particular emphasis on tokenized equities. His Xstocks platform, built on the Solana and Ethereum blockchains and available to users worldwide (excluding the U.S.), has broken through $10 billion in cumulative trading volume. The no-token, no-walled-garden model lets users connect via different wallets and DeFi protocols and, in Sethi’s view, showcases how traditional capital is gradually moving onto blockchain rails.

He believes the regulatory backdrop could further accelerate this shift. The recently passed GENIUS Act in the U.S. paves the way for stablecoins fully backed by Treasury securities, while the anticipated Clarity Act is expected to spell out listing rules for financial products on American venues. Sethi expects a “flood of innovation and capital,” while stressing that investor protection will remain a top priority.

The on-chain picture echoes this cautious optimism. According to CryptoQuant CEO Ki Young Ju, Bitcoin’s realized capitalization has hit a new all‑time high of around $1.1 trillion, signaling continued capital inflows even after the price dropped from about $127,000 to the $95,000 range. He notes that as long as BTC trades above the average purchase price of coins held for 6–12 months (roughly $94,000), it’s too early to call this a full-blown bear market even if selling by large holders can amplify short-term downside pressure.