Kraken acquires Backed Finance to expand tokenized stocks and ETFs

Backed specializes in issuing tokens that track the value of stocks and ETFs and are backed by underlying securities held with regulated custodians in Europe. This infrastructure already underpins Kraken’s xStocks service, which lets the exchange’s clients trade tokenized shares of U.S. companies and exchange‑traded funds.

Following the deal, Kraken will gain full control over its partner’s RWA technology and licenses. According to the exchange’s founders, this should make it easier to expand the range of tokenized assets and speed up xStocks’ rollout into new markets, starting with the European Union and other jurisdictions with more flexible regulation.

The purchase price has not been disclosed. It comes shortly after a new funding round that pushed Kraken’s valuation close to $20 billion. As the company prepares for a potential IPO, the exchange is steadily expanding in several directions at once, from derivatives to trading tokenized securities.

For Backed, being acquired by a major player means access to a much broader client base and additional resources for scaling. The company will remain headquartered in Switzerland, and its team, according to both sides, will be integrated into Kraken’s unit responsible for tokenizing real‑world assets.

Interest in tokenized stocks and bonds is growing across the industry, from crypto platforms to traditional brokers. Regulators in the U.S., the EU and other regions are debating how to fit such products into existing rules. Against this backdrop, Kraken is focusing on jurisdictions where the legal framework for RWA is already more structured and supported by real cases, aiming to secure a spot among the first large infrastructure providers.