KEY TAKEAWAYS
- Kraken acquires Backed Finance AG to enhance the adoption of xStocks, a leading standard for tokenized equities.
- The acquisition aims to unify issuance, trading, and settlement, boosting open capital markets infrastructure.
- xStocks offers exposure to over 60 tokenized equities and ETFs, with plans to expand across multiple blockchain platforms.
- Kraken’s integration of Backed will enhance its product suite, including the global money app, Krak.
Kraken has announced the acquisition of Backed Finance AG, a company known for issuing xStocks, a leading standard for tokenized equities. This acquisition aims to accelerate the global adoption of xStocks by unifying issuance, trading, and settlement, thereby enhancing open capital markets infrastructure.
Since its debut in early 2025, xStocks has achieved significant traction, surpassing $10 billion in combined exchange and on-chain trading volume within six months. The acquisition provides Backed with the capital and resources necessary to scale rapidly and meet the growing institutional demand for tokenized equities.
Strategic Integration and Market Expansion
Integrating Backed into Kraken’s ecosystem allows for greater strategic alignment and investment prioritization, unlocking the full economic potential of xStocks. The partnership is expected to facilitate the expansion of xStocks into new markets, extending their reach into everyday financial experiences.
xStocks currently offers exposure to over 60 tokenized equities and ETFs, each backed 1:1 by the underlying asset. These tokens are live on Solana and Ethereum, with plans to integrate on TON, Tron, Mantle, and BNB Chain soon. Investors can trade these assets 24 hours a day, five days a week on Kraken, or directly on-chain 24/7, providing a seamless bridge between traditional and crypto markets.
Enhancing Infrastructure and Ecosystem
The acquisition strengthens Kraken’s core architecture for open and programmable capital markets. According to Arjun Sethi, Kraken Co-CEO, unifying issuance, trading, and settlement under one framework ensures that the infrastructure for tokenized assets remains transparent, reliable, and globally accessible.
Backed’s team and infrastructure will be integrated into Kraken, enhancing issuance and compliance capabilities while expanding the reach of tokenized assets beyond the crypto ecosystem. Kraken plans to incorporate xStocks more deeply into its product suite, including its global money app, Krak, allowing customers to hold and spend in tokenized equities.
Adam Levi, Backed Co-Founder, noted that Backed’s rise as the industry standard for tokenized equities is a testament to the team’s focus and execution. With Kraken’s scale, the vision to democratize financial access can be accelerated globally.
This acquisition builds on Kraken’s recent strategic expansions, including acquisitions of Breakout, Small Exchange, and NinjaTrader. Kraken’s vertically integrated architecture supports rapid deployment of new asset classes while maintaining security and regulatory rigor.
For more details on the acquisition, visit the official announcement here.
Why This Matters: Impact, Industry Trends & Expert Insights
Kraken’s acquisition of Backed Finance marks a strategic effort to enhance its tokenized equities offering through xStocks, aiming to unify issuance, trading, and settlement processes.
Recent industry reports indicate that tokenized equities and real-world assets are gaining traction with increased institutional adoption and regulatory clarity. This trend aligns with Kraken’s acquisition as it seeks to expand and integrate its tokenized equity offerings within the broader financial ecosystem.
A BusinessWire report highlights that the acquisition is expected to enhance Kraken’s multi-asset ecosystem, particularly in tokenized assets, positioning it as a leader in bridging traditional finance with blockchain innovation. This supports Kraken’s strategic move to accelerate the global adoption of tokenized equities through its xStocks platform.
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