In a move that underscores the increasing trend of tokenization in the financial sector, cryptocurrency exchange Kraken has agreed to acquire Backed Finance, a platform specializing in issuing blockchain-based tokens mirroring real-world securities such as individual stocks and exchange-traded funds. The acquisition, reported by Bloomberg, is part of Kraken’s strategic efforts to integrate tokenized assets into its core trading business and capitalize on the growing interest in digital securities.
Backed Finance, founded in 2021, has quickly emerged as a key player in the tokenization space, holding about a 23% market share as the world’s second-largest public stock tokenization platform. The platform’s xStocks product offers over 60 tokenized stocks, providing users with exposure to traditional financial instruments in a digital format.
Kraken’s decision to acquire Backed Finance comes amidst a broader industry shift towards tokenization of real-world assets (RWA). The tokenization of traditional financial instruments has gained traction among large asset managers and centralized exchanges, with institutions like BlackRock issuing tokenized money-market funds worth billions of dollars. This trend reflects a growing willingness to experiment with blockchain technology in traditional finance, highlighting the potential for increased efficiency, transparency, and accessibility in asset trading.
The acquisition of Backed Finance marks Kraken’s fifth deal this year and aligns with the exchange’s strategic focus on expanding its offerings in tokenized assets. By bringing Backed Finance’s expertise in tokenized equities in-house, Kraken aims to position itself as a leading player in the tokenization space and provide users with innovative investment opportunities.
As Kraken prepares for a planned public listing in 2026, the acquisition of Backed Finance signals the exchange’s commitment to leveraging blockchain technology to transform the way traditional securities are traded and accessed. By integrating tokenized assets into its platform, Kraken seeks to bridge the gap between traditional finance and the digital asset ecosystem, offering users a seamless and secure way to invest in a diverse range of assets.
Overall, Kraken’s acquisition of Backed Finance reflects a broader industry trend towards tokenization and digital securities, highlighting the growing convergence of traditional finance and blockchain technology. As more institutions and exchanges embrace tokenization, the financial landscape is poised for further innovation and disruption, paving the way for a more inclusive and efficient global financial system.
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References:
1. https://www.financemagnates.com/cryptocurrency/kraken-doubles-down-on-tokenized-stocks-with-backed-finance-acquisition-report/
2. https://www.coindesk.com/business/2025/12/02/kraken-agrees-to-buy-tokenization-specialist-backed-finance-as-rwa-trend-accelerates
3. https://www.pymnts.com/acquisitions/2025/kraken-makes-bigger-bet-on-tokenization-with-backed-acquisition/
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