Kraken Tightens Grip on Tokenized Equities with Backed Finance Acquisition

TLDR

• Kraken buys Backed Finance to lead the tokenized equities revolution.
• The deal boosts xStocks’ reach across Solana, Ethereum, and beyond.
• Kraken unifies issuance, trading, and settlement under one ecosystem.
• Acquisition strengthens liquidity and compliance for tokenized assets.
• Kraken’s 2026 IPO strategy gains momentum with tokenized equity control.

Kraken has expanded its reach in tokenized equities through the acquisition of Backed Finance, a Swiss tokenization platform. The deal strengthens Kraken’s control over the infrastructure behind xStocks, a leading issuer of tokenized equities and ETFs. The acquisition also advances Kraken’s strategy to integrate tokenized assets across its exchange and prepare for its planned 2026 IPO.

Kraken Expands Tokenized Equities Ecosystem

Kraken has positioned itself as a dominant force in tokenized equities by absorbing Backed Finance, which issues onchain assets backed one-to-one by traditional securities. Backed currently represents around 71 assets, holding about 23% of the global market for tokenized public stocks. This acquisition enables Kraken to unify issuance, trading, and settlement within a single ecosystem.

The integration will enhance xStocks’ scalability and strengthen liquidity across markets. Kraken’s acquisition allows tighter control over tokenized equities operations, ensuring transparent and compliant infrastructure. It also helps streamline user access across both traditional and crypto trading environments.

xStocks now connects with Solana and Ethereum, with integrations coming to Tron, Mantle, and BNB Chain. These expansions aim to create seamless global access to tokenized equities trading. As a result, Kraken can offer clients a more efficient and continuous market structure.

Strengthening Infrastructure for Global Expansion

Backed Finance’s infrastructure supports a wide range of tokenized equities that mirror real-world assets. Each token reflects ownership of actual securities held in custody, offering flexibility and around-the-clock trading. This model bridges traditional markets with blockchain efficiency.

The acquisition aligns with Kraken’s broader strategy to expand real-world asset tokenization. The firm plans to embed xStocks into its wider product suite, including its financial app, Krak. This integration will allow customers to manage and spend using tokenized equities directly within Kraken’s ecosystem.

Kraken’s vertically integrated structure covers custody, clearing, and settlement, ensuring regulatory rigor. The firm continues expanding its reach with acquisitions such as NinjaTrader and Small Exchange. Together, these moves build a unified architecture for tokenized asset growth.

Tokenization Gains Mainstream Momentum

The tokenized equities market continues to accelerate as major financial institutions embrace blockchain infrastructure. Standard Chartered projects the real-world asset tokenization market could reach $2 trillion by 2028. Most of this growth is expected to occur on Ethereum and other leading blockchains.

Kraken’s acquisition underscores its confidence in tokenized equities as the next frontier in digital markets. It also enhances the exchange’s ability to integrate onchain assets into spot markets and collateral frameworks. This development further positions Kraken as a leader in open and interoperable financial infrastructure.

By acquiring Backed Finance, Kraken secures the foundation for scalable tokenized equities trading. The exchange aims to expand access, boost liquidity, and set new standards for digital asset innovation. Consequently, Kraken’s latest move marks a defining step toward mainstream adoption of tokenized equities worldwide.

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