Kraken Acquires Backed Finance to Dominate Tokenized Equities Market

Kraken has finalized the acquisition of Backed Finance, a Swiss tokenization platform, to fully integrate the issuance, trading, and settlement of tokenized stocks and exchange-traded funds (ETFs) into its global infrastructure. The deal was completed after a year of collaboration between the two companies and aims to expand xStocks, Kraken's tokenized equities product.

xStocks surpassed $10 billion in combined onchain and exchange trading volume within its first six months, highlighting rapid adoption. Backed Finance contributes over 60 tokenized assets and holds a 23% market share in the tokenized public stocks sector. Its tokens are currently supported on Ethereum and Solana, with ongoing expansions to Tron, BNB Chain, Mantle, and TON, enhancing multi-chain accessibility.

With this acquisition, Kraken gains full control over the technical architecture, including issuance, compliance rules, and multi-chain support. This enables the integration of tokenized assets into spot markets, collateral frameworks, and financial products for both retail and institutional clients. BlackRock executives have compared tokenization's potential impact to the internet's effect on information, while Standard Chartered projects the tokenized assets market could reach $2 trillion by 2028.

Kraken plans to link xStocks to its Krak app, allowing users to hold and spend tokenized equities directly, advancing toward open, interoperable markets. The exchange has also made other acquisitions, such as Small Exchange, NinjaTrader, and Breakout, to strengthen its derivatives offering and bridges between crypto and traditional markets. Its vertically integrated architecture—covering custody, clearing, settlement, and data—is designed to accelerate new asset classes while maintaining regulatory rigor.