Kraken Expands Tokenized Stock Offerings with Backed Finance Acquisition

TLDR

• Kraken has acquired Backed Finance, a Swiss platform that specializes in tokenizing real-world assets.
• The acquisition strengthens Kraken’s position in the tokenized stocks and ETFs market.
• Kraken aims to integrate Backed Finance’s xStocks product into its existing platform.
• The acquisition allows Kraken to offer round-the-clock equity trading powered by blockchain technology.
• Kraken plans to list its tokenized equities products more efficiently following the acquisition.

Kraken has confirmed its acquisition of Backed Finance, a Swiss platform that specializes in tokenizing real-world assets. This move will strengthen Kraken’s position in the market for tokenized stocks and ETFs. Kraken aims to integrate Backed’s offerings into its existing platform, signaling a clear expansion of its blockchain-based equity trading services.

Kraken Acquires Backed Finance to Boost Tokenized Asset Offerings

Kraken’s acquisition of Backed Finance aligns with its strategic goal of offering round-the-clock equity trading. Backed Finance has developed a platform where tokenized stocks and ETFs are backed one-to-one by the actual securities. These tokenized shares can be traded on Kraken’s platform anytime, including weekends and holidays.

Backed Finance’s xStocks product, which tracks over 60 tokenized equities and ETFs, will now be fully integrated into Kraken’s ecosystem. Kraken already lists several of these assets but now gains greater control over how these products are structured and managed. The acquisition allows Kraken to streamline its operations and offer enhanced services to its clients.

Arjun Sethi, Kraken’s co-CEO, commented on the acquisition, saying, “While everyone is talking about tokenized equities, we are just doing it.” He emphasized that Kraken is focused on long-term investment, rather than chasing market trends. Kraken aims to position itself as a leader in tokenized equities, and this acquisition is a key step toward achieving that goal.

This acquisition marks Kraken’s 5th purchase in 2025, highlighting the company’s expansion strategy. Kraken is gearing up for a public listing, set for 2026, and its aggressive growth plan is reflected in its recent acquisitions. With a current valuation of approximately $20 billion, Kraken is positioning itself as a dominant player in the crypto exchange market.

The Backed Finance acquisition strengthens Kraken’s tokenized equities product line. It allows Kraken to offer a broader range of assets, including popular stocks and ETFs, in a more integrated manner. Kraken’s strategy is clear: deepen its involvement in tokenized financial products while preparing for its planned IPO.

Kraken’s expansion into tokenized stocks follows broader trends in the crypto industry, where other centralized exchanges are also launching similar products. BlackRock, for instance, has introduced a tokenized money-market fund worth over $2.3 billion. These products are gaining traction as they offer non-stop access to equities and enhanced collateral flexibility.

Kraken Positioned for Growth Amidst Crypto Market Challenges

Despite the downturn in the broader crypto market, Kraken remains focused on scaling its business. The platform has benefited from an uptick in Bitcoin trading volumes, reaching their highest point since March. However, the IPO market for crypto-related companies has faced challenges this year, with companies such as Gemini and Circle seeing their valuations drop post-IPO.

Kraken’s expansion strategy also signals its readiness to scale quickly and withstand market volatility. The crypto exchange has been proactive in diversifying its offerings, which helps offset fluctuations in the market. As it moves toward its 2026 IPO, Kraken continues to focus on integrating new technologies and expanding its product offerings to meet growing demand.

This acquisition of Backed Finance reflects Kraken’s commitment to increasing its dominance in the tokenized equities space. By integrating Backed’s assets into its core platform, Kraken hopes to drive further adoption of blockchain-powered equity trading. This development is part of Kraken’s broader vision to provide a continuous, decentralized market for tokenized financial products.

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