Will Kraken Become the Next Robinhood? They’re Trying to…

TLDR

• Kraken is now offering equities trading in select states.
• The UI is designed to allow users to trade crypto, stocks, and ETFs seamlessly.
• The company has other large moves in the works to expand offerings further.

San Francisco-based crypto exchange Kraken has taken a bold step into the traditional financial realm by introducing U.S. equities trading to its platform. The new release allows its US users to trade stocks and exchange-traded funds (ETFs) alongside their crypto holdings. This is another play that’s blurring the lines of traditional finance and crypto. 

And it’s something we’re seeing more and more. The question buzzing among investors and crypto enthusiasts is whether Kraken is positioning itself as the next Robinhood — but with a crypto-first identity. Let’s get after it.

The New Face of Kraken

Kraken’s latest move is an expansion and an unofficial declaration of intent. Partnering with licensed broker-dealer Alpaca, the platform now offers commission-free trading for over 11,000 U.S.-listed stocks and ETFs. 

It also supports fractional trading, giving users the flexibility to invest in high-value stocks without needing to purchase a full share. Only have $100 but really want to invest in Strategy? You can do that.

While the move kind of mirrors what’s available from fintech giant Robinhood, Kraken is quick to differentiate itself by providing a single, unified account where users can seamlessly manage their cryptocurrencies, stocks, stablecoins, and cash. 

Whether you’re a hodler, a stock enthusiast, or somewhere in between, Kraken’s new feature is designed to cater to all.

Currently, this service is available only to U.S.-based clients in select states, but Kraken plans to expand access nationwide in the coming months. The initial rollout includes New Jersey, Connecticut, Wyoming, Oklahoma, Idaho, Iowa, Rhode Island, Kentucky, Alabama, and the District of Columbia.

What Sets Kraken Apart?

If you’re asking yourself what makes Kraken different from Robinhood or other traditional brokerage platforms, the answer lies in its infrastructure and vision. 

Robinhood built its identity around democratizing stock trading, while Kraken is pioneering a blend that encapsulates both traditional and digital assets. Arjun Sethi, Kraken’s Co-CEO, frames this evolution well when he states, “The future of trading is borderless, always on, and built on crypto rails.”

The new features are designed with intention. They want to simplify the user experience. 

The Evolution to a Brokerage-Crypto Hybrid

Robinhood changed the game by giving individuals easy access to stock markets without any fees, breaking down barriers for a generation of investors. Then came crypto. And then prediction markets. And that’s just the tip of their iceberg. 

Kraken is adopting a similar ethos but with an edge honed in the crypto space. Beyond trading stocks, Kraken envisions a world where asset tokenization becomes the norm. And they are making it clear this move is in preparation for that moment.

“Expanding into equities is a natural step for us, and paves the way for the tokenization of assets,” added Sethi.

Another goal for the company is to allow users to reinvest seamlessly from stocks into crypto (or vice versa), presenting a streamlined experience that current brokerages and crypto exchanges haven’t fully nailed yet. 

Why This Matters for Investors

Kraken’s equity trading launch signifies an evolution in how financial services are converging. Platforms are no longer just stock-focused or crypto-centric. They’re becoming holistic ecosystems. 

Crypto enthusiasts, in particular, stand to benefit significantly. Many already hold assets in Bitcoin, Ethereum, or stablecoins and are familiar with the digital-first nature of decentralized finance. Kraken’s platform gives them the option to diversify their portfolios without jumping between platforms.

For TradFi investors, convenience is arguably the most compelling factor. With a unified account, developing and executing strategies that cut across asset classes is easier. For example, profits from bullish crypto cycles can be rotated immediately into stable stocks or ETFs, without transferring funds to an external brokerage.

Is This Enough to Make Kraken the Next Robinhood?

Not all that glitters is gold, friends. A member of the Dypto Crypto team uses Kraken regularly. And they are not impressed.

Our team member said, “I’ve been using Kraken for years, and I’ve been quite happy with the services. However, over the last few months, I’ve noticed some big discrepancies between their original platform and the new frontend they are pushing people towards. The new app seems to have bigger fees, and market prices don’t seem to be consistent with actual market prices. It’s hard to tell if this is unintentional or if they are trying to squeeze new and unassuming users.”

The Shorter Answer Is “Not Yet”

While Kraken has taken monumental steps to break into traditional finance, branding it the “next Robinhood” is probably a bit reductive. And honestly, maybe the comparison is unfair.

Yes, the inclusion of commission-free U.S. equities trading invites comparison, but Kraken is building something different. Robinhood is a traditional brokerage with a separate crypto platform, whereas Kraken is a crypto-first platform broadening its horizons to include equities.

This positioning appeals to a distinct audience. Robinhood might feel more familiar if you’re primarily a stock trader who occasionally dips into crypto. 

On the other hand, if digital assets are your forte and you’re keen on managing both assets in one place, Kraken’s offering speaks directly to you.

It’s important to note that until assets can be tokenized, stock trading cannot be done on chain. So while you’re on one platform, the transactions are happening in different ways. Even if you use Kraken for stocks, you can only trade during market hours, and buys/sells won’t always happen as fast as they do on the blockchain.

What the Future Holds

What an interesting header. We’re super stoked we came up with it. Why? Because the future of Kraken is…well…futures. They recently announced the biggest (reportedly) deal between a TradFi and crypto company, with them looking to acquire the NinjaTrader platform for $1.5 billion.

It’s also reported that the company has an IPO in the future. But reports on that are mostly unsubstantiated. We’ll keep you updated if we get any real news on the topic.

Back on Topic

Expanding into equities trading marks a pivotal moment for Kraken and the financial industry at large. Platforms like Kraken are erasing traditional and digital finance boundaries, moving toward a future where all assets coexist in one ecosystem. Kind of…

However, execution will be the differentiator between platforms. We have unanswered questions. Quite a few of them.

Can Kraken scale its equities program effectively across the nation while maintaining the trust and security it has built in the crypto space? And will its audience of crypto enthusiasts fully adopt equities trading through the platform?

*shrug*

For now, the move seems calculated, aligning with Kraken’s vision (and the vision of many other platforms both in crypto and TradFi) of where finance is headed. With plans to tokenize assets in the future, successive innovations could further distinguish Kraken from Robinhood and other financial service providers.

Kraken Wants to Set the Tone

Kraken’s equity trading launch is setting the stage for the next phase of financial integration. Blending stocks and crypto into one unified experience, the company is catering to investors who value convenience, affordability, and innovation.

If you’ve been wondering whether to expand your portfolio to include equities or simplify the way you manage your investments, Kraken’s new feature could be worth exploring. 

After all, the future of trading isn’t just about accessibility or variety. It’s about unifying experiences in a way that puts the investor in full control. That’s why we all got into this mess crypto, right?