Kraken Expands Tokenization Presence with Acquisition of Backed Finance
Date: 2025-12-03 Author: Henry Casey Categories: BUSINESS
Cryptocurrency exchange Kraken announced the acquisition of Backed Finance, a company that issues digital tokens backed by real assets and providing access to stocks and ETFs. The deal marks the exchange's latest step in developing tools related to the tokenization of traditional financial assets.
According to Arjun Sethi, a senior executive at Kraken, in a comment to Bloomberg, the exchange aims to not simply observe the development of the tokenized securities segment, but actively shape it. He noted that while there is much market talk about digital assets linked to real securities, Kraken is focusing on practical implementation and long-term development.
Even before the official announcement of the acquisition, Kraken was already offering users a number of products created by Backed Finance. Among the most popular instruments is the xStocks token line, which allows investing in over sixty stocks and exchange-traded funds through digital equivalents backed by real assets at a 1:1 ratio. Once integrated, these products will become part of the Kraken ecosystem, simplifying access for the exchange's clients.
Kraken representatives emphasize that the acquisition of Backed Finance is part of a long-term strategy to expand its offering of tokenized instruments. The company aims to create a scalable infrastructure capable of bridging the traditional stock market and the crypto industry, providing users with new investment formats.
According to Bloomberg, Backed Finance ranks second in the tokenized public equity market, holding approximately 23% of the segment. Its products cover a wide range of assets, from technology stocks to major ETFs, making the platform a key player in its niche.
Kraken's interest in asset tokenization fits into a larger trend: the market for digital alternatives to traditional instruments is rapidly growing, and institutional players are beginning to pay increased attention to this segment. In this context, the merger of Kraken and Backed Finance could strengthen the exchange's position among the leaders in this field.
Earlier, it was reported that Kraken had filed confidentially for an IPO, indicating the company's plans to strengthen its presence not only in the crypto industry but also in traditional financial markets.
