Kraken Allows Users to Pledge Tokenized Stocks as Crypto Collateral

Kraken has introduced a new feature that allows eligible users to pledge tokenized stocks as collateral for leveraged crypto trades.

The update enables users to keep equity exposure while unlocking trading capital, without selling their shares. This shift brings traditional finance and crypto closer together, with tokenized equities becoming integrated into crypto market infrastructure.

Kraken applies haircuts and per-asset caps to mitigate leverage risk and liquidation, similar to traditional financial markets.