Crypto exchange Kraken has announced its acquisition of tokenization expert Backed Finance as firms in the crypto space enhance their efforts to bring real-world assets onto the blockchain, a market expected to reach trillions in value within the next decade.
According to a Tuesday press release, Kraken intends to integrate the Switzerland-based company’s tokenized stocks and exchange-traded funds (ETFs) into its trading platform, though no details regarding the deal were disclosed.
As Kraken gears up for its public offering, it has been on a buying spree. Earlier in the year, it acquired U.S. futures platform NinjaTrader for $1.5 billion, the U.S.-licensed derivatives trading venue Small Exchange for $100 million, and the proprietary trading firm Breakout. Last month, the exchange secured $800 million in funding, led by Citadel Securities, raising its valuation to $20 billion.
“Integrating Backed into Kraken enhances the fundamental infrastructure necessary for open and programmable capital markets,” stated Kraken co-CEO Arjun Sethi. “Consolidating issuance, trading, and settlement under a single framework guarantees that the infrastructure for tokenized assets remains transparent, dependable, and accessible globally.”
The two companies launched xStocks, a tokenized equities platform, in June, which has since issued over $170 million in stock tokens and recorded a trading volume of $2.3 billion onchain, as per a Dune dashboard.
This acquisition aligns with a broader trend in tokenization as both crypto firms and traditional asset managers transition real-world assets—like bonds, stocks, and funds—onto blockchain technology. Advocates assert that this shift will yield operational efficiencies, quicker settlements, 24/7 trading, and wider distribution. A report from Ripple and BCG estimates the market will reach $18 trillion by 2033.
