Kraken Strengthens Tokenization Strategy With Backed Finance Deal

Kraken has taken a major step toward expanding its tokenization business, announcing the acquisition of Backed Finance, the issuer behind its xStocks tokenized-equities program.

The deal brings one of the industry’s leading tokenization providers directly under Kraken as the exchange prepares for a planned 2026 IPO.

Backed creates on-chain versions of more than 70 stocks and ETFs, each backed 1:1 by underlying securities. With roughly 23% market share, it is the second-largest issuer of tokenized public equities, according to RWA.xyz. Kraken did not disclose purchase terms, but Backed has already powered more than $5 billion in cumulative xStocks trading volume across U.S., European and multi-chain rollouts.

Tokenization Momentum Builds Across the Industry

Backed’s infrastructure extends beyond Kraken’s ecosystem, supporting tokenized equity integrations for firms such as Bybit and Mantle. Bringing the company in-house gives Kraken tighter control over how tokenized assets function across spot markets, collateral systems and future product lines.

Read More:

$6.25B Dell Donation Broadens Reach of U.S. Child Investment Program

The acquisition arrives during a broader shift toward on-chain financial infrastructure. BlackRock executives Larry Fink and Rob Goldstein have described tokenization as a transformative force for global markets, while Standard Chartered forecasts $2 trillion in tokenized real-world assets by 2028. Demand for tokenized yield and on-chain collateral accelerated through 2025, according to RedStone analysts. Founded in 2021, Backed will continue supporting its live tokens during the transition.

Kraken Expands Ahead of Planned IPO

The move adds to Kraken’s recent buildup. The exchange closed a funding round this year valuing it at $20 billion and has made several large acquisitions, including the Small Exchange for derivatives trading and the $1.5 billion purchase of NinjaTrader — the largest crypto-TradFi deal to date.

By absorbing Backed Finance, Kraken positions itself at the center of the growing tokenization wave and strengthens its infrastructure ahead of its U.S. listing ambitions.