Tokenization Surges: Kraken Tokenizes SpaceX IPO, Prediction Markets Outpace Gambling, SBF Seeks Pardon

Crypto prices have spent much of the year reacting to macro headlines and regulatory uncertainty, but tokenization has remained one of the industry’s few consistent growth stories. Active real-world assets are surging, banks are embracing blockchain infrastructure and tokenized equities are expanding into new markets.

That momentum was on full display this week as Kraken rolled out tokenized access to the highly anticipated SpaceX IPO, offering eligible users in more than 110 markets a chance to participate through xStocks.

Elsewhere, prediction markets surpassed onchain gambling for the first time, and former FTX CEO Sam Bankman-Fried formally asked US President Donald Trump for a pardon.

Tokenized RWAs keep growing through crypto downturn

Tokenized RWAs continue to gain traction despite a weaker crypto market. According to Binance Research, the market for active tokenized RWAs has surged 589% since early 2025, with bonds and money market funds adding $6.5 billion in value while tokenized stocks jumped 422%.

The sector is also becoming more diversified. Platforms such as Ondo Global Markets have fueled demand for tokenized equities, while tokenized precious metals gained $1.5 billion as investors sought safe-haven assets earlier this year.

At the same time, traditional financial institutions are expanding their blockchain initiatives, from Apex Group’s tokenized fund services to The Clearing House’s planned tokenized deposit network, highlighting growing adoption beyond crypto-native companies.

RWA growth by asset. Source: Binance Research

SpaceX IPO gets tokenized

Crypto exchange Kraken gave eligible users in more than 110 markets access to the SpaceX IPO through xStocks, allowing investors to purchase tokenized shares of Elon Musk’s aerospace company ahead of its public debut.

According to Kraken, investors who received an allocation will be issued SPCXx, a tokenized representation backed 1:1 by the underlying equity and tradable 24/7 across participating platforms.

The launch comes as demand for tokenized equities continues to accelerate. SpaceX targeted a $75 billion raise in its Nasdaq debut, with the offering reportedly oversubscribed by roughly four times ahead of public trading, putting it on track to become the largest IPO in history.

Prediction markets surpass onchain gambling

Prediction markets surpassed onchain gambling for the first time in the first quarter of 2026, generating $36.6 billion in volume compared with gambling’s $14 billion, according to blockchain intelligence firm TRM Labs. The milestone comes after both sectors topped $50 billion in annual volume in 2025, underscoring their rapid growth.

Crypto gambling, however, hasn’t lost momentum. Quarterly wagering volume remained near record highs despite the broader market pullback, with TRM attributing the resilience to a loyal and expanding user base. While so-called high rollers – who averaged $13,558 per bet and $378,000 in lifetime gambling volume – still account for most betting volume, casual bettors and daily users are driving the fastest growth, broadening participation across the sector.

Prediction markets eclipse onchain gambling for the first time. Source: TRM Labs

Sam Bankman-Fried seeks Trump pardon

Former FTX CEO Sam Bankman-Fried has formally applied for a presidential pardon from US President Donald Trump, adding another legal avenue to overturn his conviction in connection with the crypto exchange’s multibillion-dollar collapse.

The request appears on the US Department of Justice Office of the Pardon Attorney’s list of pending clemency applications. The pardon bid comes as Bankman-Fried continues to appeal his 2023 fraud conviction and 25-year prison sentence after a separate request for a new trial was denied.

In recent months, he has also posted a series of social media messages that appear increasingly aligned with Trump, despite the president previously saying he did not plan to pardon the former crypto executive.

Sam Bankman-Fried’s pardon request. Source: Office of the Pardon Attorney

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