Kraken to Offer Tokenized U.S. Stocks on Solana Blockchain, Eyes Global Clients

Crypto exchange Kraken plans to offer tokenizedversions of popular U.S. equities. According to the exchange's announcement today (Thursday), Krakenwill list a new suite of tokenized equities dubbed xStocks in partnership withBacked Finance. The assets will reportedly be live on the Solanablockchain and represent actual shares held 1:1 by Backed.

Clients in selected non-U.S. jurisdictions will reportedlybe able to trade more than 50 U.S. stocks and ETFs, including Tesla, Nvidia,Apple, and the SPDR S&P 500 ETF, outside traditional market hours.

Round-the-Clock Stock Access

The launch positions Kraken among the first exchanges tosuccessfully list tokenized U.S. equities since Binance's short-lived effort in2021. Unlike earlier iterations, Krakens approach relies on real securitiesheld in custody and tokenized on a fast, low-cost blockchain.

Were reimagining equities investing and ushering ina new wave of demand from clients seeking better alternatives to the statusquo, said Mark Greenberg, Kraken Global Head of Consumer.

Access to traditional U.S. equities remains slow,costly, and restricted. With xStocks, were using blockchain technology todeliver something better, open, instant, accessible, and borderless exposure tosome of Americas most iconic companies.

Read more: Kraken Puts Cyprus Licence to Use: Launches Crypto Derivatives in Europe

The xStocks tokens are reportedly issued as SPL tokens on Solana, meaning they are compatible with wallets andprotocols on the network. This integration also allows users to leverage theirtokenized stocks in decentralized finance environments, including as collateral.

Borderless Trading

Krakens tokenized equities initiative builds on itsbroader push into traditional finance. Earlier this year, it launched equitiestrading for U.S. clients, offering over 11,000 stocks and ETFs directly throughits app.

Now, Kraken is targeting global access viatokenization. Unlike traditional brokerage accounts, xStocks can be traded 24/7and potentially used in decentralized applications, a combination that traditionalfinance currently cannot match.

Tokenization, once a fringe concept, is emerging as apractical tool to increase market access and improve liquidity. Expansion tothe U.K., Europe, and Australia is expected soon.

This week, Kraken debuted its crypto derivatives products for European users. The offering is made through a Cyprus license acquired bythe company earlier this year. The exchange can reportedly passport its Marketsin Financial Instruments Directive license from Cyprus to offer cryptoderivatives across other countries in the European Economic Area.

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Coinbase Customer Data Leak Incident Faces DoJ Investigations

The US Department of Justice (DoJ) has launched an investigation into the recent security breach at crypto exchange Coinbase (Nasdaq: COIN). The breach involved a leak of internal documents and data linked to a small subset of customer accounts, which perpetrators accessed by bribing overseas support agents of the company.

First reported by Bloomberg, citing a person familiar with the matter, Coinbases Chief Legal Officer, Paul Grewal, also confirmed the investigation is underway.

We have notified and are working with the DOJ and other US and international law enforcement agencies, and welcome law enforcements pursuit of criminal charges against these bad actors, Grewal said.

The DoJ has not commented publicly on the investigation.

A Socially Engineered Attack

Coinbase disclosed the breach last week after the perpetrators contacted the company, demanding a $20 million ransom. The exchange refused to pay, instead offering a $20 million reward for information leading to the identification of those responsible.

The stolen data includes names, addresses, emails, account balances, masked bank details, and partial Social Security numbers. Importantly, private keys and passwords were not accessed, and Coinbase confirmed that Prime accounts were unaffected.

The incident came to light on 11 May when Coinbase received an email from an unidentified threat actor claiming access to internal documents and the details of certain customer accounts. The exchange now expects the financial impact of the cyberattack to range between $180 million and $400 million.

In April, Coinbase announced changes to its user agreement that added two clauses limiting class action lawsuits and requiring lawsuits to be filed in New York. The changes apply to disputes initiated after May 15.On May 14, Coinbase disclosed a data breach. pic.twitter.com/ffMR2K4YRo

Is Coinbases Security Now in Question?

Despite the recent breach, Coinbase remains one of the few major crypto exchanges not previously impacted by a full-scale cyberattack.

Earlier this year, Bybit suffered a record $1.5 billion crypto theft, allegedly carried out by North Koreas Lazarus Group, which exploited vulnerabilities in its cold wallet infrastructure. In 2022, Binance, the worlds largest crypto exchange by volume, also fell victim to a breach when attackers minted 2 million BNB tokens, worth around $570 million at the time.

Meanwhile, Coinbase was added to the S&P 500 index yesterday, replacing Discover Financial Services. The US-based exchange has also agreed to acquire crypto options platform Deribit for $2.9 billion and is reportedly bidding to acquire stablecoin issuer Circle.

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Crypto.com Exchange Acquires CySEC-regulated Broker, Plans to Offer CFDs in Q3 2025

Cryptocurrencyexchange Crypto.com has obtained a Markets in Financial Instruments Directive(MiFID) license through its acquisition of Cyprus-based A.N. Allnew InvestmentsLtd, the operator of LegacyFX trading brand, the company announced today (Wednesday).

Theacquisition, approved by the Cyprus Securities and Exchange Commission (CySEC),allows Crypto.com to offer a broader range of traditional financial products toeligible users across the European Economic Area (EEA), including securities,derivatives, and contracts for difference (CFDs).

Crypto.com Acquires AllnewInvestments, Secures MiFID License for European Expansion

The movefollows Crypto.com's January 2025 acquisition of a Markets in Crypto-Assets(MiCA) license, which enabled the platform to passport its cryptocurrencyservices throughout the European region. These dual authorizations position thecompany to bridge traditional and digital asset markets under a unifiedregulatory framework.

Securing aMiFID licence alongside our MiCA licence further solidifies Crypto.comsposition in offering the most comprehensive and regulated suite of financialproducts for users in the EEA, said Kris Marszalek, Co-Founder and CEO ofCrypto.com. We have already expanded our brand presence in Europe sincereceiving our MiCA licence and we now look forward to providing customersacross the region even more ways to engage with our platform through these newofferings.

ForCrypto.com, the MiFID license represents the latest addition to its growingregulatory portfolio. The company has pursued an aggressive acquisitionstrategy, previously purchasing Fintek Securities, Charterprime, OrionPrincipals, and SEC-registered broker-dealer Watchdog Capital.

CFDs Coming in Q3 2025

Plans toadd CFDs are not merely theoretical. Crypto.coms product roadmap includes theintention to launch FX, index, and commodities derivatives by the end of thisyear, most likely in the third quarter.

Thissuggests that the acquisition of LegacyFX, whose website remains active andwhich is licensed by CySEC under license number 344/17, was aimed directly atsecuring the regulatory approval needed to offer CFDs, which are popular inEurope.

Purchase-to-License

Thisacquisition aligns with a growing trend among major cryptocurrency exchangesseeking to diversify their service offerings through established regulatorychannels. Rather than navigating lengthy application processes, these platformsare increasingly pursuing acquisitions of licensed entities as an entry pointto regulated markets.

Crypto.comjoins other major exchanges like Kraken in adopting this approach. Just one dayprior, Kraken announced the launch of its own regulated derivatives tradingunder MiFID II through Payward Europe Digital Solutions, following itsacquisition of futures platform NinjaTrader earlier this month.

Thederivatives sector has become a focal point of expansion for cryptocurrencyplatforms seeking growth beyond spot trading. Earlier this month, U.S.-basedCoinbase acquired derivatives platform Deribit, with CEO Brian Armstrongsignaling continued interest in strategic acquisitions.

With bothMiFID and MiCA licenses secured, Crypto.com now has the regulatory clearance tooffer one of the most comprehensive product suites in the Europeancryptocurrency market.

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Kraken Puts Cyprus Licence to Use: Launches Crypto Derivatives in Europe

Kraken announced yesterday (Tuesday) the launch of its crypto derivatives products for European customers. The services are being offered under a Cyprus licence acquired by the American crypto exchange earlier this year.

Kraken Begins Operating from Cyprus

The exchange can passport its Markets in Financial Instruments Directive (MiFID II) licence from Cyprus to offer crypto derivatives across other countries in the European Economic Area (EEA).

FinanceMagnates.com previously reported that Kraken obtained the Cyprus licence by purchasing a local entity formerly linked to contracts for differences (CFDs) broker Pacific Union Group, now operating as PU Prime outside Cyprus.

The latest announcement confirmed that Kraken will offer both perpetual and fixed maturity contracts to European clients.

Europe is one of the fastest-growing regions for digital asset trading and investment, with some of the most sophisticated and demanding clients and institutions, said Shannon Kurtas, Head of Exchange at Kraken. Clients and partners increasingly seek comprehensive offerings within a regulated framework.

According to Kurtas, crypto derivatives products will improve capital efficiency, access to liquidity, reliability, and enable sophisticated strategies and position management.

Road to the IPO

Kraken was founded in 2011 by Jesse Powell and launched in 2013. Headquartered in San Francisco, it is one of the longest-standing cryptocurrency exchanges still in operation. The exchange plans to go public by the end of 2025 or early 2026. According to reports, it aims to raise up to $1 billion in debt before its public listing.

Recently, eToro, a retail broker with a strong crypto offering, went public through an initial public offering (IPO). The Israeli companys shares were listed at a premium to the IPO price on Nasdaq.

Robinhood, another retail broker listed on Nasdaq, also generates a large share of its revenue from crypto. However, it is now looking to diversify away from the asset class due to the fluctuating nature of trading volumes.

If listed, Kraken would become the second crypto-only exchange to go public after Coinbase, which recently joined the S&P 500 index. Meanwhile, Kraken is also expanding into traditional asset classes, having acquired retail futures trading platform NinjaTrader in a $1.5 billion deal.

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Binance Asks U.S. Court to Dismiss $1.76 Billion Clawback Lawsuit Filed by FTX Estate

Binance has asked a Delaware court to throw out a$1.76 billion clawback lawsuit filed by the FTX estate, arguing that thenow-bankrupt crypto exchange is targeting the wrong party.

According to the court documents, Binance says FTXs collapse stems from internal fraud,not any action it or former CEO Changpeng Zhao took, and that the case fails tomeet basic legal standards.

Binance Rejects Claims, Deflects Blame

In a motion filed last week, Binance described FTXscase as legally deficient and lacking any plausible basis. The companypointed to the conviction and 25-year sentence of FTX founder SamBankman-Fried, calling the company's downfall one of the most massive corporatefrauds in history.

Binance has asked a Delaware court to dismiss FTXs $1.76bn asset recovery suit, calling it legally untenable, denying involvement in FTXs collapse, and arguing the case lacks jurisdiction over the non-U.S. exchange.https://t.co/Tx4w2r7ap4 pic.twitter.com/pKwvMZAPAo

The FTX estate argues the firm was already insolventat the time and financed the deal using misappropriated customer funds. Binancedisputes the charge. It claims FTX continued to operate for over a yearfollowing the deal, undermining any assertion of prior insolvency. The exchange also said the lawsuit failed to show thatBinance had any knowledge of the source of funds used in the transaction.

Read more: XRP Futures Debut on CME With $19M Volume on First Day, Driving ETF Speculation

FTX also accused Zhao of using Twitter to undermineconfidence in the company, pointing to a November 2022 post in which he saidBinance would sell its FTT holdings due to recent revelations. The suitsuggests that the tweet sparked a surge in withdrawals and a liquidity crisis atFTX.

However, Binance argues that the tweet responded to publicreporting, not private knowledge. The November 2022 tweets were posted in thedays following a report by CoinDesk, Binance said, adding that thecomplaint contains no facts indicating the posts were false or misleading.

Jurisdiction and Legal Boundaries Disputed

Binance further argues that the court lacksjurisdiction over its foreign corporate entities. It said none of thedefendants are based in the U.S. or directly conducted the transfers inquestion.

The clawback suit is one of many filed by the FTXrecovery trust to recoup assets following the firms high-profilecollapse. The bankruptcy left billions in customer funds missing and sentshockwaves through the crypto industry.

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XRP Futures Debut on CME With $19M Volume on First Day, Driving ETF Speculation

After years of speculation, XRP has officially enteredthe regulated derivatives market in the U.S. with the launch of futurescontracts on CME Groups platform.

According to the company, the move reflects growinginstitutional appetite for XRP but also revives discussion around the approvalof a long-awaited spot XRP exchange-traded fund (ETF).

Institutional Activity Begins with a $19 Million Start

CME Group confirmed that its new XRP futures begantrading on Sunday, May 18, with the first trade executed as a block cleared byHidden Road. Day-one trading volume reportedly exceeded $19 million in notionalvalue.

The launch of regulated XRP Futures on @CMEGroup marks a key institutional milestone for XRPand very excited to report that Hidden Road cleared the first block trade on CME at the opening! https://t.co/Njj8AUSY5K

Hidden Road, which cleared the first transaction, seesthe launch as part of a broader shift in digital asset infrastructure. The CMEXRP futures are cash-settled, based on the CME CF XRP-Dollar Reference Rate,and available in two sizes: 2,500 XRP and 50,000 XRP. The reference rate tracksXRPs dollar value daily at 4:00 p.m. London time.

CME now offers futures on several major cryptocurrencies, including Bitcoin, Ethereum, and Solana. Notably, XRPs debutvolume surpassed that of CMEs Solana contracts, which launched in March andsaw $12.3 million in notional volume on their first day. The company announced its debut in April.

Read more: XRP News: Ripple Secures First UAE Clients After DFSA License, But XRP Price Declines

As innovation in the digital asset landscape continues to evolve, market participants continue to look to regulated derivatives products to manage risks across a wider range of tokens, said Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group.

Starting May 19, trade regulated, capital-efficient futures on XRP, available in larger- and micro-sized contracts, so you can scale your exposure with greater precision and flexibility. More on XRP futures https://t.co/SzDtBmkG7r pic.twitter.com/BDJRzYSvTd

However, XRPs spot market price dropped by 3.45% overthe past 24 hours, reflecting broader market volatility rather than sentimenttied specifically to the futures launch.

ETF Speculation Gains Traction

The existence of a regulated futures market for XRPcould play a key role in the approval process for a spot ETF, a goal severalU.S. issuers continue to pursue. The U.S. Securities and Exchange Commission(SEC) has not yet ruled on those applications.

Previously, the SEC had cited the existence ofregulated futures as a rationale for approving spot Bitcoin and Ethereum ETFs,suggesting that XRP may now meet similar criteria.

As CME strengthens its position in crypto derivatives,XRPs entrance into the regulated U.S. futures space could mark a pivotal stepin bridging the gap between digital assets and traditional finance.

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Coinbase Faces DoJ Investigations After Customer Data Leak

The US Department of Justice (DoJ) has launched an investigation into the recent security breach at crypto exchange Coinbase (Nasdaq: COIN). The breach involved a leak of internal documents and data linked to a small subset of customer accounts, which perpetrators accessed by bribing overseas support agents of the company.

First reported by Bloomberg, citing a person familiar with the matter, Coinbases Chief Legal Officer, Paul Grewal, also confirmed the investigation is underway.

We have notified and are working with the DOJ and other US and international law enforcement agencies, and welcome law enforcements pursuit of criminal charges against these bad actors, Grewal said.

The DoJ has not commented publicly on the investigation.

A Socially Engineered Attack

Coinbase disclosed the breach last week after the perpetrators contacted the company, demanding a $20 million ransom. The exchange refused to pay, instead offering a $20 million reward for information leading to the identification of those responsible.

The stolen data includes names, addresses, emails, account balances, masked bank details, and partial Social Security numbers. Importantly, private keys and passwords were not accessed, and Coinbase confirmed that Prime accounts were unaffected.

The incident came to light on 11 May when Coinbase received an email from an unidentified threat actor claiming access to internal documents and the details of certain customer accounts. The exchange now expects the financial impact of the cyberattack to range between $180 million and $400 million.

In April, Coinbase announced changes to its user agreement that added two clauses limiting class action lawsuits and requiring lawsuits to be filed in New York. The changes apply to disputes initiated after May 15.On May 14, Coinbase disclosed a data breach. pic.twitter.com/ffMR2K4YRo

Is Coinbases Security Now in Question?

Despite the recent breach, Coinbase remains one of the few major crypto exchanges not previously impacted by a full-scale cyberattack.

Earlier this year, Bybit suffered a record $1.5 billion crypto theft, allegedly carried out by North Koreas Lazarus Group, which exploited vulnerabilities in its cold wallet infrastructure. In 2022, Binance, the worlds largest crypto exchange by volume, also fell victim to a breach when attackers minted 2 million BNB tokens, worth around $570 million at the time.

Meanwhile, Coinbase was added to the S&P 500 index yesterday, replacing Discover Financial Services. The US-based exchange has also agreed to acquire crypto options platform Deribit for $2.9 billion and is reportedly bidding to acquire stablecoin issuer Circle.

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Behind Circles Public Listing Push Lies Private Bidding War With Crypto Giants: Report

As stablecoins gain adoption in the global financialsystem, a high-stakes power play is emerging behind the scenes. In early April,Circle filed paperwork to go public in the U.S., aiming for a valuation of atleast $5 billion.

Circle, the company behind USDC, is now caught in a crucialmoment, publicly pursuing an IPO while quietly exploring a potential sale totwo crypto heavyweights: Coinbase and Ripple, Fortune reported.

However, that IPO plan may never make it to Wall Street.Four executives in banking and private equity say Circle has been in informalsale discussions with both Coinbase and Ripple, which could upend its publiclisting.

BREAKING: Circle has filed for an IPO, planning to list its Class A common stock on the NYSE under the symbol CRCL. pic.twitter.com/ugM1P1mL1c

Behind the IPO Curtain

Though Circle remains committed to going public, ithasnt yet launched its IPO roadshow or finalized terms. The lack of momentumleaves room for other outcomes.

Coinbase received an equity stake in Circle, and bothcompanies still share revenue from USDCs reserves. Crucially, Coinbase earnsall of the reserve revenue when USDC is held on its platform, an increasinglyfrequent occurrence, judging by its earnings reports.

Read more: OANDA Japan Deletes Inactive Accounts With Zero Balances, Cites Trading Terms

According to Circles S-1 filing, the currentagreement grants Coinbase far more than just revenue. Circle needs Coinbasesconsent to forge major new partnerships for USDC. Coinbase also has partialrights to Circles intellectual property if Circle becomes insolvent.

These terms make Coinbase not just a partner, but anatural acquirer. With $8 billion in cash and a $56 billion market cap, thepublicly traded exchange has the financial firepower to close a deal swiftly.Its recent addition to the S&P 500 has only added momentum.

Ripple Makes Its Bid

Ripple is also in the mix, having reportedly offered $45 billion to acquire Circle. That offer was rejected as too low, but Ripplehas the resources to try again. It holds roughly $11.8 billion worth of XRP andnearly $96 billion more in escrow. Any new bid would likely combine XRP andcash.

Circle Rejected Ripple Takeover Bid of $4-5B https://t.co/6VPRVN5hZx pic.twitter.com/mP3Ff6EEKU

Stablecoins like USDC are increasingly seen as thedigital twin of the U.S. dollar. Control over Circle could mean influence overa core component of tomorrows financial infrastructure.

Circles IPO ambitions remain intact for now. The recent success of eToros debut, with its shares jumping 29% on the first day, may encourage Circle to follow through. However, sources close to the matter suggest that anacquisition remains a very real possibility.

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UK Crypto Firms Will Need to Collect Every Customer's Address, Tax Number from 2026

The United Kingdom government will require crypto companies to collect and report user and transaction data from 1 January 2026. This includes each users full name, home address, and tax identification number.

Hefty Fine of £300 Per User for Misreporting

According to an announcement by HM Revenue & Customs last week, the UK governments data collection plan will follow the Organisation for Economic Co-operation and Development (OECD) Cryptoasset Reporting Framework (CARF).

You may want to start collecting information earlier, so that you are ready when the new rules come into force, the announcement stated. Failure to provide accurate, complete, or verified reports may result in penalties of up to £300 per user.

You may also like: Japan Will Reclassify Crypto as Financial ProductsWhat It Means for Investors

Youll need to verify that the information you collect is accurate by carrying out due diligence. Well update the guidance with information about how to do this in due course, it added.

New UK regulations mandate reporting ALL crypto transactions by 2026. Firms must report sender and recipient names, addresses, tax IDs & full trade details (token type, quantity, GBP value, & timestamp). Non-compliance may incur fines up to £300 per user.The UK is done.

Home Address to TIN Nothing Is Off Limits

The data must be collected for all individual users, entity users, and cryptoasset transactions involving users in the UK and other CARF countries.

For individual users, the required data includes the users name, date of birth, home address, country of residence, National Insurance number or Unique Taxpayer Reference (for UK residents), and the tax identification number (TIN) along with the country where it was issued (for non-UK residents).

For entity users, companies must collect the legal business name, main business address, the registration number (for UK firms), and the TIN and issuing country (for non-UK firms). In some cases, platforms must also gather details of the companys controlling persons.

The transaction data that must be recorded and reported includes the value, type of cryptoassets, type of transaction, and the number of units.

These new rules may lead to the collection of a large volume of data. According to a recent YouGov survey, the number of Britons buying cryptocurrencies more than doubled from 6 per cent in 2022 to 14 per cent in 2023.

Meanwhile, the UKs Financial Conduct Authority (FCA) recently revealed that it is considering restrictions on UK residents purchasing cryptocurrencies using credit. However, authorised stablecoin purchases would be exempt. The regulator is currently seeking public feedback on this and other planned measures.

At present, the FCA requires all crypto firms operating in the UK to register. Its oversight is currently limited to anti-money laundering rules, the financial promotions regime, and consumer protection laws.

Despite the registration requirement, the FCA rejected 86 per cent of crypto firm applications in the 12 months ending April 2024. In the current financial year, however, the rejection rate has dropped to 75 per cent.

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FTX Set for $5 Billion Second-Phase Distribution Following $7 Billion Payout

Advisers managing the bankruptcy of FTX are preparing todistribute $5 billion to the companys creditors. This will be the secondpayout this year. The first round began in mid-February.

In the February round, repaymentsstarted with customers in the Convenience Class. These are individualswith claims of $50,000 or less. They are receiving full repayment along with 9%annual interest from November 2022. FTX distributed $7 billion in the firstphase. The new $5 billion distribution is scheduled to begin on May 30.

FTX Begins Second Creditor Payout

FTX said that customers and other creditors will receivebetween 54% and 120% of what they are owed in this payout. The company saidpayments will be made through either Bitgo or Kraken. These payments are being made under a Chapter 11 plan. Theplan was approved by a bankruptcy judge in Delaware last year.

You may find it interesting at FinanceMagnates.com: FTXEU Customers Claims Are on the Way: New Owner Backpack Initiates Process.

FTX TO DISTRIBUTE $5B TO CREDITORS ON MAY 30FTX Recovery Trust will start giving out more than $5 billion to its remaining creditors on May 30, 2025.The payout will be managed through Kraken and BitGo. This is the second phase of FTXs plan, approved by the court, to pic.twitter.com/s0NJ1KmgJw

Asset Recovery Could Reach $16.5B

FTX filed for bankruptcy in November 2022. Customers will berepaid what they were owed at that time. However, they are being repaid in cashand will not benefit from the rise in cryptocurrency prices since the firmscollapse.

Last year, FTX held about $12.6 billion. This could increaseto $16.5 billion as advisers continue to recover and sell assets, according tocourt filings. In April, FTX said it had launched legal action against tokenand coin issuers that still owe money to the company.

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