Kraken tokenization strategy advances with acquisition of Backed Finance

In a move that underscores the growing race in kraken tokenization and digital markets, the US-based crypto exchange is buying a key player in tokenized assets.

Kraken buys Backed Finance to expand tokenized securities offering

Kraken will acquire Backed Finance, a platform that issues digital tokens mirroring real-world assets such as stocks and exchange-traded fund shares, according to a statement released Tuesday. The crypto exchange already lists stocks and ETFs issued by Backed. However, following the deal, it plans to integrate those tokenized products more deeply into its main trading interface.

Moreover, Kraken Co-Chief Executive Officer Arjun Sethi said in an interview that the acquisition is designed to tighten the link between blockchain infrastructure and traditional equity markets. The company expects that closer integration will make it easier for users to access tokenized shares and ETF exposure alongside cryptocurrencies.

Strategic context and funding backdrop

The acquisition follows a fresh Kraken funding round that recently closed and valued the company at about $20 billion. That funding event gave Kraken additional capital to support expansion in regulated products and infrastructure. In parallel, the company is preparing for a potential public listing in 2026, which could further boost its profile among institutional investors.

That said, the latest deal signals how the firm sees long-term demand for tokenized stock trading and other real-world asset products on-chain. By owning Backed Finance outright, Kraken aims to streamline listing, custody, and settlement flows for tokenized securities across its ecosystem.

Implications for blockchain-based equity and ETF markets

With the Backed Finance acquisition, Kraken is betting that user appetite for blockchain-based access to stocks and ETFs will continue to grow. Moreover, the company expects that combining a large crypto exchange with an in-house issuer of digital representations of equities can improve product responsiveness and innovation cycles.

In practice, the kraken tokenization push will allow the group to align exchange infrastructure with issuance of asset-backed tokens representing traditional financial instruments. However, as tokenized equity and ETF markets mature, competition from other major trading platforms is also likely to intensify.

Overall, Kraken’s purchase of Backed Finance, supported by its recent $20 billion valuation and 2026 listing ambitions, underlines a broader trend of convergence between crypto trading venues and conventional capital markets.