Tokenized equities and prediction markets reshape crypto infrastructure despite regulatory headwinds
Kraken has launched SPCXx, a tokenized representation of SpaceX IPO shares, making the aerospace company’s debut equity available to eligible users across 110+ markets. The tokens are backed 1:1 by underlying equity and tradable 24/7 across participating platforms, according to Kraken.
The launch arrives as tokenized real-world assets (RWAs) have surged 589% since early 2025, driven by institutional adoption and blockchain infrastructure expansion. Bonds and money market funds added $6.5 billion in tokenized value, while tokenized stocks jumped 422%. Tokenized precious metals gained $1.5 billion.
SpaceX’s IPO is targeting a $75 billion raise in its Nasdaq debut and has reportedly been oversubscribed roughly four times, positioning it to become the largest IPO in history. The tokenization model allows fractional ownership and continuous trading outside traditional market hours, addressing liquidity constraints in conventional equity markets.
Traditional financial institutions are accelerating blockchain adoption. Apex Group and The Clearing House have expanded blockchain initiatives, while platforms like Ondo Global Markets continue fueling demand for tokenized equities. Banks are embracing blockchain infrastructure as regulatory clarity improves.
Separately, prediction markets have emerged as a dominant onchain asset class. In Q1 2026, prediction markets surpassed onchain gambling for the first time, recording $36.6 billion in volume compared to $14 billion in gambling volume. Both sectors exceeded $50 billion in annual volume during 2025.
Crypto gambling remains resilient despite the volume shift. High rollers account for most betting activity, with average high roller lifetime gambling volume reaching $378,000 and average high roller bets at $13,558. Casual bettors and daily users are driving fastest growth, however.
In separate developments, Sam Bankman-Fried, the former FTX CEO serving a 25-year prison sentence, has formally requested a presidential pardon from Donald Trump. His pardon request appears on the DOJ Office of the Pardon Attorney’s pending clemency applications list. Bankman-Fried continues to appeal his 2023 fraud conviction after a separate request for a new trial was denied.
Trump previously stated he did not plan to pardon Bankman-Fried. However, Bankman-Fried has posted social media messages appearing increasingly aligned with Trump’s positions since formally submitting his clemency application.
RWA Growth Outpaces Volatility
The 589% surge in tokenized RWAs reflects institutional confidence in blockchain infrastructure despite ongoing crypto price volatility and regulatory uncertainty. The growth trajectory suggests tokenization is transitioning from experimental to mainstream financial infrastructure.
Kraken’s SPCXx launch demonstrates how major exchanges are positioning tokenized equities as a core product offering. The 24/7 trading capability and fractional ownership structure address structural inefficiencies in traditional equity markets, particularly for global investors.
Prediction markets’ dominance over gambling signals a shift in onchain activity toward information markets and price discovery mechanisms. The $36.6 billion Q1 volume represents a significant milestone in establishing prediction markets as a primary use case for blockchain-based financial infrastructure.
