Crypto exchange Kraken has started accepting select tokenized stocks and ETFs as collateral for futures and margin trading. This allows eligible users to open leveraged positions without first selling the assets they already hold.
The initial rollout supports 10 tokenized instruments, including tokenized shares of major US technology companies like Apple, Nvidia, and Tesla. Tokenized ETFs such as Strategy, the SPDR S&P 500 ETF, and Invesco QQQ Trust are also supported.
Assets receive collateral haircuts that reduce their effective lending value. Broad-market ETFs receive a 10% discount, while certain higher-volatility names are discounted by 30%. Collateral limits vary by asset type, with up to $1 million for broad-market ETFs and up to $250,000 for most individual stocks.
Support is limited to eligible clients outside the United States, with different collateral rules depending on the jurisdiction. Kraken's move aligns with a broader industry trend of expanding the utility of tokenized real-world assets beyond simple custody or spot trading.