The cryptocurrency market is seeing a strategic pivot as major exchanges integrate traditional financial products. Kraken and Coinbase are introducing stock trading features to attract traditional finance investors, aiming to capture capital as equities outperform digital assets. This expansion occurs amid a significant contraction in crypto market liquidity, with total capitalization down nearly $2.03 trillion from its peak.
Major cryptocurrency exchanges are expanding their offerings to attract traditional finance investors. Kraken announced the launch of xStock perpetual futures contracts for trading tokenized equities, providing 24/7 access in over 110 countries with leverage up to 20x. Coinbase, in contrast, has partnered with Yahoo Finance to offer spot equity trading within its app, operating five days a week, with plans for tokenized U.S. equities later this spring.
Mark Greenberg, Kraken’s Global Head of Consumer, described the initiative as “a new chapter for global capital markets,” stating these products offer “the same speed, accessibility, and flexibility as crypto via tokenization, delivering a more efficient risk management experience.” This strategic move follows the proven success of cryptocurrency exchange-traded funds (ETFs), which drew approximately $54.4 billion in assets under management.
The expansion comes as the cryptocurrency market faces a sharp contraction in liquidity. Market data shows the total crypto market capitalization has fallen 47.5% since the October 6, 2025 crash. By comparison, the S&P 500 has gained 17% over the same period, presenting a notable performance gap between traditional equities and digital assets.
This shift allows exchanges to diversify revenue streams amid a challenging market. Coinbase recently reported a 22% decline in fourth-quarter revenue, highlighting the pressure to find new growth avenues. The strategy aims to position these platforms as comprehensive financial hubs capable of capturing broader global capital flows, regardless of asset class performance.
