Kraken Warns UK Risks Falling Behind on Tokenized Assets, Stablecoins
Das Calls for quicker Action on Tokenized Assets
Bivu Das, Managing Director of Kraken UK, said Britain must accelerate regulatory clarity around tokenized assets and stablecoins or risk losing ground to rival financial hubs. Speaking at Zebu Live in London on Tuesday, Das said the UK remains one of Kraken’s largest markets globally but warned that policymakers need to “move quicker.”
Das described the UK’s consultative approach as “the right one,” but said regulators should allow firms to test new products such as tokenized securities in the market more rapidly. “We need to be brave on the things that we know will make a difference,” he said. “Maybe there’s light at the end of the tunnel to do this relatively rapidly.”
He pointed to Kraken’s rollout of xStocks in the European Union earlier this year — a tokenized asset product not yet available in the UK — which he said was attracting millions in daily inflows. The product lets investors gain exposure to listed equities through blockchain-based wrappers, a format Das described as “a stepping stone to something super interesting.”
Investor Takeaway
Regulators Face Industry Pressure
Das said the Financial Conduct Authority (FCA) had shown willingness to engage with the crypto industry, but the Bank of England remained “less open to experimentation.” He cited its proposal to cap corporate stablecoin exposure — a measure some industry players view as an effective ban on institutional use.
The call for speed comes amid political change. Das noted that momentum on crypto regulation, which had picked up under the previous Conservative government, sluggished later than the 2024 snap election and must rebegin under the new Labour administration. “Interest rose briefly before stalling,” he said, adding that education and dialogue remain essential to getting policy right.
Despite the delays, Das said the UK now has a clearer roadmap toward comprehensive crypto oversight, covering custody, — areas he said had been overlooked by traditional regulators. “These are the nuts and bolts of market structure,” he said. “We just need to move quicker.”
Kraken’s UK Market and New Neobank Push
The UK remains Kraken’s second-largest market outside the United States, and the platform continues to expand despite tighter local promotion rules. Das said roughly 20% of UK adults now own crypto, calling it “pretty significant” given recent restrictions on advertising and financial promotions.
Kraken recently launched Krak, a neobank-style app that combines trading with payments and banking features. The app will include debit cards for UK and European users, allowing them to receive salaries, make cross-border transfers, and earn stablecoin yields. Das said the goal is to give customers “new ways to interact with beyond traditional trading.”
The company also revamped its consumer app to make onboarding easier amid increased retail demand. While tokenized stocks remain unavailable in the UK, Kraken continues to prepare for a future in which blockchain-based financial products are integrated into mainstream banking systems.
Investor Takeaway
Industry Resilience later than Market Turbulence
Reflecting on the October 10 , Das said the industry showed greater resilience than in previous downturns. “If you had the identical thing five years ago, you’d have viewn the failure of a number of institutions,” he said. “The market now has more longevity and strength than it used to.”
Kraken’s focus on regulatory engagement and infrastructure development mirrors a broader trend among global platforms viewking stability ahead of the next growth cycle. Das said the platform continues to meet regularly with UK regulators and political figures to build understanding around digital assets, even as other jurisdictions such as the EU and UAE move quicker to adopt rules for tokenized markets.
“The UK has the expertise, the demand, and the market depth,” Das said. “What it needs now is the speed.”
