Why Tokenized Equities Can’t Just Be “Wall Street on a Blockchain”

As traditional finance increasingly converges with blockchain technology, a leading voice from crypto exchange Kraken says merely replicating Wall Street infrastructure onchain misses the point. Mark Greenberg, Kraken’s Global Head of Consumer Business, believes tokenized equities must do more than mimic legacy systems — they must revolutionize them.

“Tokenized equities can’t just be ‘Wall Street on a blockchain.’ That misses the point,” Greenberg told Cointelegraph.

“Equities should feel like the internet — always on, self-directed, and globally accessible.”
More Than a Digital Wrapper: A Call for Programmable, Borderless Finance

Greenberg argued that tokenization presents a unique opportunity to fundamentally reimagine financial access, not just repackage it. While legacy institutions often view tokenization as a way to modernize outdated infrastructure, Greenberg sees it as a chance to build entirely new financial rails — ones that are:

Programmable like DeFi
Accessible to a global audience

Always available, without being bound by traditional market hours or intermediaries
“This isn’t just about wrapping old assets in new tech,” Greenberg said.
“It’s about rebuilding financial access to be as fluid and programmable as crypto.”

He envisions a future where retail investors gain real-time access to tools once reserved for institutional players — and where developers can build stock-related apps as freely as they do today with stablecoins or yield farming protocols.

Kraken’s xStocks and the Case for Open, Composable Infrastructure

Kraken is already putting this philosophy into practice. On June 30, the company partnered with Backed Finance to launch xStocks, a tokenized equity product offering access to over 60 U.S. stocks, including Meta, Netflix, and Coinbase.

The product is live on Kraken, Bybit, and multiple DeFi protocols on Solana, giving users decentralized access to popular equities while maintaining compliance.

“We’re building base-layer systems that are permissionless and composable, while ensuring the assets themselves adhere to clear legal frameworks,” Greenberg explained.

“Regulation should evolve to support this balance, not suppress it.”

This approach aims to preserve DeFi’s openness and flexibility, without sacrificing regulatory clarity or consumer protection.

Ethereum Enters the Tokenized Stock Race

Kraken isn’t alone in the race to redefine equity trading. eToro also plans to launch tokenized U.S. stocks — but on Ethereum instead of Solana. The platform will offer 100 tokenized equities, with a focus on accessibility and compliance.

Meanwhile, Ethereum-aligned organizations are taking proactive steps to engage with regulators. On July 21, several met with the U.S. Securities and Exchange Commission (SEC) to discuss the development of industry standards for tokenized securities.

These discussions aim to create a framework that bridges onchain innovation with offchain regulation, ensuring that tokenized assets can scale within existing legal frameworks.

The Bigger Picture: Rewriting the Rules of Global Markets

Tokenized equities have the potential to do far more than digitize Wall Street — they could rewrite the rules of global markets. If done right, tokenization could lead to:

24/7 trading across borders
Reduced reliance on middlemen
Greater financial inclusion, particularly in underserved regions

Composability, allowing developers to build entirely new financial products from tokenized assets

Greenberg believes the next generation of financial infrastructure must feel as native to the internet as email or digital payments.

“This is about giving retail investors access to legacy tools and building programmable financial systems that weren’t possible before,” he said.