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What is Asset.S and Asset.M?
On-chain staking
An overview of eligibility criteria (including geographic restrictions) for On-chain staking can be found here.
Asset Code Migration
Starting November 15th, 2023, assets will no longer carry the ".S" or ".M" in their asset codes. Instead, staked assets will use the standard asset code (e.g. DOT.S -> DOT).
This will be a gradual change applied to accounts over time in batches. The transition will be represented in your Kraken Pro Ledger as "Migration".
Any asset code ending with a ".S" represents an On-chain staked balance. For example, XTZ.S represents On-chain staked Tezos while XTZ are non-staked Tezos.
Any asset code ending with a ".M" represents an Opt-In Rewards balance. For example, BTC.M represents Opt-In Rewards Bitcoin while BTC are Bitcoin are not Opted-In.
Any asset code ending with a ".P" represents a Parachain balance. For example, DOT.P represents assets bonded to parachains. 
You may notice staked balances when looking over your Ledger History.