Kraken is making a major move in the tokenized assets space. The crypto exchange has reached an agreement to acquire Backed Finance, the issuer behind its growing xStocks product line. The deal reinforces Kraken’s long-term push into tokenization as it prepares for a potential U.S. IPO in 2026.
Backed Finance issues onchain versions of 71 public equities and ETFs. Each token is backed one-for-one by the underlying asset, giving traders blockchain-based access to traditional markets. The company is currently the second-largest issuer of tokenized public stocks with about 23 percent market share, according to RWA.xyz. Kraken did not share the financial details of the acquisition.
A Partnership Turned Strategic Move
Kraken and Backed have been working closely for more than a year, with Backed powering the entire xStocks offering since launch. The products have generated more than $5 billion in cumulative trading volume on Kraken, and the exchange has expanded access across the U.S., Europe, and multiple blockchain networks including Tron, BNB Chain, and Solana.
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Backed’s technology also supports tokenization features across the wider crypto industry. Bybit has used the infrastructure to bring tokenized equities such as Nvidia into Mantle’s onchain ecosystem.
By absorbing Backed, Kraken gains deeper control over the issuance and support of tokenized equities. That coordination could help the exchange strengthen spot trading, improve collateral systems, and accelerate new product releases. Backed, founded in 2021, will continue to support its existing token lineup as it transitions under Kraken’s ownership.
Tokenization Gains Momentum
The acquisition arrives as tokenization shifts from a speculative trend to a serious part of global finance. BlackRock’s Larry Fink and Rob Goldstein recently highlighted the technology’s potential to reshape financial markets on the scale of the early internet. Standard Chartered projects tokenized real-world assets could reach $2 trillion by 2028, with most activity centered on Ethereum.
Demand for yield-bearing tokens, onchain collateral, and asset-backed products has surged through 2025, with analysts at RedStone noting strong growth across the sector.
Kraken Positions for Its IPO
Kraken has been steadily strengthening its position as interest in tokenization grows. The firm raised new funding this year at a valuation near $20 billion and has completed several major acquisitions. These include buying the Small Exchange to expand U.S. derivatives trading and the $1.5 billion purchase of NinjaTrader, one of the largest deals linking crypto with traditional finance.
With Backed Finance now joining the fold, Kraken is signaling that tokenization will play a central role in its future roadmap, both before and after its planned public listing.
