Kraken Acquires Backed Finance to Boost xStocks Tokenized Equities Platform

Kraken Expands Tokenized Equity Offerings Through Acquisition of Backed Finance

Kraken, a leading American cryptocurrency exchange, has announced the acquisition of Backed Finance AG, the firm behind the innovative xStocks platform. This move reflects Kraken’s strategic push into tokenized equities, enhancing its product suite amid a broader industry trend toward digital asset tokenization.

Key Takeaways

• Kraken plans to integrate xStocks’ tokenized equities into its ecosystem, including its global money app, with expanded blockchain support.
• xStocks offers tokenized versions of over 60 publicly traded stocks and ETFs, processing more than $10 billion in combined volume since launch.
• The platform supports tokens on Solana and Ethereum, allowing 24/7 trading with self-custody options and multi-network usability.
• The acquisition aims to consolidate Kraken’s XStocks Alliance and improve interoperability and liquidity across markets expanding into tokenized equities.

Tickers mentioned: None

Sentiment: Positive

Price impact: Positive. The acquisition signals growing institutional interest and market support for tokenized equities, likely boosting liquidity and adoption.

Trading idea (Not Financial Advice): Hold. The integration of tokenized stocks is expected to further legitimize and expand the market, though risks remain due to regulatory and volatility considerations.

Market context: The move by Kraken underscores the increasing mainstream acceptance and expansion of tokenized equities within the broader crypto ecosystem.

Kraken Bolsters Its Portfolio with Acquisition of Backed Finance

Kraken has finalized its acquisition of Backed Finance AG, expanding its footprint in the burgeoning market of tokenized equities. The firm’s flagship product, xStocks, issues digital tokens representing ownership in traditional publicly traded stocks and ETFs. Since its release earlier this year, xStocks has issued over 60 different products, with a cumulative trading volume exceeding $10 billion across onchain and exchange venues.

The platform enables live trading on the Ethereum and Solana networks, where tokens are available around the clock, providing users with autonomous custody options and cross-network compatibility. The integration of xStocks’ issuance, trading, and settlement into Kraken’s wider ecosystem is expected to enhance liquidity and streamline access across existing markets, including the company’s global money app. Additionally, Kraken aims to expand support to more blockchain networks and markets, leveraging the acquisition to deepen interoperability.

This move follows Kraken’s rollout of xStocks to eligible European users in September, showcasing its strategic expansion into regulated tokenized assets. The firm also operates the xStocks Alliance, a network of partner chains and trading venues that facilitates broader market access for tokenized equities. The acquisition aligns with Kraken’s aggressive growth strategy, which has included recent purchases of NinjaTrader, proprietary trading platform Breakout, and Small Exchange, a designated contract market.

In parallel, the rise of tokenized assets continues to accelerate across major platforms. In June, xStocks launched on Binance, Solana-based DeFi platforms, and others, offering tokenized versions of blue-chip stocks such as Meta, Apple, Tesla, and Microsoft. Robinhood has also rolled out a layer-2 blockchain on Arbitrum, enabling commission-free trading of over 200 US stock and ETF tokens, with a total onchain value nearing $11 million. Meanwhile, regulated tokenized stocks tracked by RWA.xyz total around $656 million in market value, with a significant market share held by issuers including Ondo, Backed Finance, and Securitize.