- Kraken acquires Backed Finance to expand tokenization
- Backed issues 60+ tokenized equities and ETFs
- Deal strengthens Kraken’s position ahead of 2026 IPO
Cryptocurrency trading platform Kraken has taken the next step in expanding its offering of tokenized real-world assets by acquiring Backed Finance, the largest issuer of tokenized equities and exchange-traded funds. It will be a great move in Kraken’s tokenization strategy, as the company moves toward its confidentially filed 2026 IPO. The acquisition will consolidate Kraken’s position in a growing part of the digital asset market as more institutions seek to invest in it.
Backed Finance is the issuer of on-chain representations of over 60 public equities and ETFs under its xStocks product line. The underlying securities are one-to-one. According to the RWA.xyz statistics, the company has approximately a 23% market share, making it the second-largest tokenized public stock platform. Over the past year, Kraken has been using Backed’s infrastructure to integrate its products into U.S. and European markets and to facilitate trading on Ethereum, Tron, Solana, and BNB Chain.
Kraken acquires backed finance to strengthen tokenization strategy
According to Kraken, the acquisition will bring token issuance, trading, and settlement under a single framework. Arjun Sethi, co-CEO, remarked that the move to integrate Backed offers the basis for open, programmable capital markets and said it is not short-term hype. Supported Backed will retain the current tokens as it transitions to Kraken ownership.
The use of tokenization has been growing across global markets, with backing from major asset managers and regulated exchanges. Recently, BlackRock executives have stressed that tokenized assets may transform market infrastructure, noting their potential to enhance efficiency and settlement processes. Standard Chartered estimates that the tokenized RWA market would be valued at 2 trillion by 2028 due to investor demand for 24-hour trading, 24-hour fractional ownership, and 24-hour access to collateralized digital assets.
Growing demand for tokenized assets drives industry expansion
Kraken’s acquisition comes at a time when banks, exchanges, and fintech companies are launching similar products. The infrastructure of Backed drives tokenized products across a variety of platforms, including the on-chain ecosystem of Bybit and Mantle. The tokenization of equities like Apple, Meta, and Nvidia has enabled new ways for global users to access markets, particularly in areas where they are not well-exposed to conventional financial markets.
Regulatory issues still influence the sector. The activities of Backed are subject to the MiCA framework of the European Union, and the recent case of Kraken obtaining a license in Ireland demonstrates that the company can expand its offering of tokenized securities in a regulatory setting. These regulatory innovations are key to attracting institutional investors focused on transparent and audited asset securities.
Kraken increases market share before projected 2026 IPO
This is the fifth acquisition Kraken has made this year, and it follows a funding round that placed the company at about $20 billion. The exchange has also acquired the Small Exchange and NinjaTrader as it continues to expand into derivatives, payments, and on-chain financial services. Kraken’s growth includes introducing its Kraken Card to the U.K. and the EU, which would provide customers with cashback and the ability to spend directly on crypto balances.
