- Kraken finalizes acquisition of Backed Finance for tokenized equities.
- Strategic move to bolster market presence.
- Aims to bridge crypto and traditional equity markets.
Kraken, a leading cryptocurrency exchange, announced the acquisition of Backed Finance AG, specializing in tokenized equities, to strengthen its market position before its planned IPO in 2026.
This acquisition enhances Kraken’s infrastructure for tokenized assets, bridging traditional equities with blockchain technology, amid increasing institutional interest and aligning with regulatory compliance measures.
Kraken has announced the acquisition of Backed Finance, a company known for its tokenized equities solution, xStocks. This move is intended to accelerate the growth of tokenized assets ahead of Kraken’s planned 2026 IPO.
Arjun Sethi, Co-CEO of Kraken, stated this acquisition strengthens the capital markets architecture. Backed Finance’s platform potential will be scaled with Kraken’s resources, aiming to democratize financial access globally within this framework.
The acquisition impacts the tokenized equities and ETFs market. xStocks’ digital collateral integration on blockchain technology strengthens financing mechanisms. This strategic integration does not currently affect major cryptocurrencies directly.
Financial and compliance structures will be enhanced while fostering interoperability and liquidity across markets. Kraken continues to align with stringent regulation, bolstering its existing compliance posture with the capabilities from Backed Finance.
This acquisition aligns Kraken’s continued strategic alignment merging traditional equity with crypto asset markets. It strengthens infrastructure for global adoption of tokenized equities. The upcoming IPO and Backed Finance integration are key business focus areas.
Exploring financial, regulatory, and technological opportunities, Kraken positions itself to influence market trends. The merger may catalyze traditional asset tokenization with over $10 billion trading traction on xStocks, as noted in 2025. It aims to foster a robust, compliant trading environment.
“Integrating Backed into Kraken strengthens the core architecture required for open and programmable capital markets… This is foundational work for the next era of market structure.”
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