Kraken Acquires Backed Finance to Boost Tokenized Equities

TLDR

• Kraken raised $800 million to support strategic expansions.
• Over $10 billion in trading volume reported for xStocks in six months.
• Acquisition enhances Kraken’s capabilities in tokenized asset markets.

Kraken, a well-known cryptocurrency exchange, is set to acquire Backed Finance AG. The acquisition focuses on the tokenized equities sector, which is gaining traction as the company prepares for its IPO slated for 2026. Backed Finance is the creator of xStocks, a prominent tokenized equities standard, and this acquisition aims to expedite the global adoption of such equities.

The integration plan includes a total unification of the teams and infrastructure of both companies. This merger anticipates enhancing the issuance, trading, and settlement processes on open capital markets rails. Key figures in this development include Arjun Sethi, Co-CEO of Kraken, who noted the acquisition’s role in strengthening global capital markets infrastructure.

Key Figures Discuss Integration

Arjun Sethi, Co-CEO of Kraken, emphasized how this acquisition could be foundational for future market structures. He highlighted the integration’s potential to enhance transparency, reliability, and accessibility for tokenized assets. Adam Levi, co-founder of Backed Finance, acknowledged Backed’s pioneering approach since 2021 in bridging traditional finance and crypto with compliant, scalable tokenized equities.

The deal not only integrates key infrastructure but also extends Backed’s ability to reach a broader audience. Levi noted that with Kraken’s backing, Backed can now expand its offerings, indicative of the surge in institutional demand for tokenized equities. Backed Finance, known for its compliant tokenized equities issuance since its founding, stands to significantly benefit from Kraken’s resources.

Funding and Market Impact

To support its strategic expansions, Kraken has raised $800 million in recent funding rounds. This financial boost underscores the exchange’s commitment to advancing tokenized equity markets and supports its upcoming initial public offering. The integration with Backed Finance also gives Kraken access to capital and increased institutional demand for tokenized equities.

Over $10 billion in combined exchange and on-chain trading volume was reported for xStocks within its first six months of launch in 2025. This high volume reflects strong liquidity and trading activity in tokenized equities using this platform. While xStocks primarily targets tokenized equities, its compatibility across major blockchain ecosystems could involve Layer 1 chains like Ethereum.

Past Acquisitions and Future Potential

Kraken has a history of strategic acquisitions, including firms like Breakout, Small Exchange, and NinjaTrader. These moves have expanded Kraken’s product scope and institutional-grade infrastructure. This latest acquisition positions Kraken as a more comprehensive financial platform, enhancing its capability to integrate new asset classes.

Kraken’s acquisition of a tokenization firm reflects the growing trend of tokenizing real-world assets. As the company prepares for its anticipated 2026 IPO, such developments demonstrate its strategic aim to leverage current market trends.