Kraken Lets Traders Use Tokenized Stocks as Collateral for Leveraged Trades

Crypto exchange Kraken has introduced a new feature that allows traders to use select tokenized stocks and ETFs as collateral for leveraged trades. This move is part of an effort to expand the role of tokenized real-world assets in financial markets.

The feature initially supports 10 tokenized stocks and ETFs, including Apple, Nvidia, Tesla, Strategy, the SPDR S&P 500 ETF, and Invesco QQQ Trust. Eligible users can post those holdings as collateral without selling them first.

Each eligible asset is assigned a collateral haircut that reduces its lending value based on risk. Broad-market ETFs receive the lowest haircut at 10%, while more volatile stocks such as Strategy and Robinhood are discounted by 30%.