Kraken Acquires Backed to Fuel Tokenized Equities Surge

Kraken Acquires Backed Finance in Major Tokenization Push

Kraken, one of the world's largest cryptocurrency exchanges, has announced its acquisition of Backed Finance AG, a leading issuer of tokenized equities and ETFs. The move is part of Kraken's broader strategy to expand its presence in the tokenization of real-world assets and further integrate traditional financial instruments into the blockchain ecosystem according to reports. The terms of the deal were not disclosed, but the acquisition is expected to accelerate Kraken's leadership in tokenized assets and strengthen its infrastructure for open capital markets.

The xStocks platform, now under Kraken's umbrella, has already seen over $10 billion in combined trading volume since its launch earlier this year according to Bloomberg.

The xStocks product currently offers exposure to over 60 tokenized equities and ETFs, all backed one-to-one by their underlying assets.

These tokens are currently running on Solana and Ethereum, with plans to expand to TON, Tron, Mantle, and BNB Chain in the near future as reported. The 24/7 trading capability, combined with self-custody and multi-chain support, is designed to bridge traditional finance and the decentralized ecosystem according to Bitcoin News. The acquisition marks a significant step in Kraken's vision for open, interoperable financial infrastructure. By unifying issuance, trading, and settlement under one framework, the exchange aims to create a more transparent and reliable environment for tokenized assets according to Business Wire. Kraken Co-CEO Arjun Sethi emphasized the strategic importance of the move, calling it foundational work for the next era of market structure according to Bloomberg. The integration of Backed's team and infrastructure into Kraken's platform is expected to enhance compliance and issuance capabilities, further expanding the reach of tokenized equities according to Bitcoin News.

Market Implications and Competitive Landscape

The tokenization of real-world assets is gaining momentum, with Kraken's acquisition reflecting broader trends in the financial industry. Backed's xStocks platform, currently the second-largest in the tokenized equities space with roughly 23% market share, has demonstrated significant adoption since its launch in early 2025 according to Bloomberg. This deal positions Kraken to compete more effectively with other exchanges and fintech platforms that are also exploring tokenization as a way to modernize capital markets according to CoinCentral.

The move also strengthens Kraken's position as it prepares for a potential 2026 initial public offering. The acquisition is the fifth this year for the exchange, following previous acquisitions such as Breakout, Small Exchange, and NinjaTrader as reported. These strategic moves are part of Kraken's broader effort to build a vertically integrated platform covering custody, clearing, and settlement, allowing for the rapid deployment of new asset classes while maintaining regulatory compliance according to Bitcoin News. The company recently closed a $500 million funding round, valuing it at $15 billion according to NFT Gators.

Broader Industry Trends and Future Outlook

The tokenized equities market is still in its early stages but is showing signs of rapid growth. Major financial institutions, including BlackRock, are also exploring tokenized assets, with one of the firm's money market funds already tokenized and holding over $2.3 billion according to Bloomberg. Standard Chartered has projected the real-world asset tokenization market could reach $2 trillion by 2028, with most growth expected to occur on Ethereum and other major blockchains according to CoinCentral.

Kraken's acquisition of Backed Finance is seen as a decisive step toward mainstream adoption of tokenized equities. The company plans to embed xStocks into its broader product suite, including its global money app, Krak, which will allow customers to hold and spend tokenized equities as reported. This expansion into everyday financial experiences could make tokenized assets more accessible to a wider audience, aligning with Kraken's vision of open and borderless capital markets according to Bitcoin News.

The integration of Backed's technology and expertise into Kraken's ecosystem is expected to enhance liquidity and interoperability for tokenized assets. The exchange aims to build a thriving ecosystem of partners spanning blockchain foundations, trading venues, and consumer applications as reported. This approach could further solidify Kraken's role as a leader in the next generation of financial infrastructure, bridging traditional markets with the decentralized world according to Bitcoin News.