Kraken strengthens tokenized stock offerings by acquiring Backed Finance, aiming for global digital asset integration and a 2026 IPO.
Kraken has acquired Backed Finance, the world’s second-largest stock tokenization platform, to expand its tokenized assets. Moreover, the deal places Kraken in a position to bridge the traditional finance and decentralized finance worlds by bringing real-world assets to its platform. Consequently, the move is a giant step towards making capital markets transparent, efficient, and accessible on a global level.
Backed Finance’s xStocks product includes more than 60 tokenized stocks and ETFs. Furthermore, these tokens are collateralized 1:1 by underlying equities, ensuring stability and trust. Kraken plans to integrate xStocks fully into its trading platform and global money app, Krak. Additionally, the platform runs on Ethereum and Solana, but has plans to expand to TON, Tron, Mantle, and BNB Chain.
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The xStocks product has already surpassed $10 billion in combined exchange and on-chain trading volume within six months. Moreover, it underscores the increasing appetite by investors for tokenized US equities. Nevertheless, these products are not available for use by U.S. persons because of regulatory restrictions. Experts argue that such tokenized exposure provides liquidity and faster settlement compared with conventional trading methods, aligning with Kraken’s strategic goals.
Kraken recently closed an $800 million funding round, putting the company’s valuation at around $20 billion. Furthermore, this acquisition comes on the back of its acquisition of the Small Exchange and NinjaTrader, boosting its U.S. derivatives and TradFi integration.
Arjun Sethi, Kraken Co-CEO, emphasized that unifying issuance, trading, and settlement ensures infrastructure remains reliable, transparent, and globally accessible. Moreover, this foundation is supporting the company’s 2026 IPO.
Kraken acquisitions are part of its strategy to take advantage of the adoption of blockchain and the tokenization wave, according to industry analysts. Additionally, by bringing real-world assets onto its platform, it may redefine what it means to own assets in the digital age.
On the other hand, Kraken is positioning itself as a leader in the programmable capital markets alongside increasing global reach. Furthermore, the company’s growing ecosystem provides exposure to high-demand U.S. stocks without traditional brokerage limitations.
The acquisition also reflects the bigger picture of bridging the TradFi and DeFi markets. Moreover, Kraken’s tokenization of assets could help improve settlement efficiency and liquidity worldwide. Consequently, investors and institutions may start relying more heavily on tokenized products for secure, accessible, and transparent market participation.
Kraken’s move is a clear indication to integrate tokenized equities and ETFs and scale operations across the world. In addition, as the firm gears up for its IPO, Backed Finance’s assets contribute to the credibility of its product offerings and the firm itself in the market. As a result, this acquisition could help tokenized assets gain traction faster and define the standards for digital investments across world markets.
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