Kraken Buys Backed Finance to Double Down on Tokenized Stocks Ahead of IPO

What Does Kraken Gain by Bringing Backed In-House?

Kraken has agreed to acquire Backed Finance, the tokenized asset issuer behind its xStocks product line. Backed issues onchain versions of 71 public equities and ETFs, each tied one-for-one to underlying securities. The company holds roughly 23% of the tokenized public-stock market, according to RWA.xyz data, making it the second-largest provider in the sector.

The deal — terms undisclosed — formalizes a partnership that has expanded steadily over the past year. Backed has supplied the infrastructure behind xStocks since launch, supporting more than $5 billion in cumulative . The platform rolled out xStocks in the U.S. earlier in 2025, extended access to Europe, and later added support on Tron, BNB Chain and Solana.

Kraken’s move consolidates the mechanics of tokenized equities under its own umbrella. With Backed operating internally, the platform gains direct control over issuance, custody flow, collateral rules and the path to expand tokenized assets into broader trading products.

Investor Takeaway

Why Is Tokenization Accelerating Across the Industry?

Backed’s infrastructure supports a growing list of tokenization integrations outside Kraken. Bybit used Backed to bring tokenized versions of Nvidia, Strategy and other equities onto Mantle’s onchain ecosystem. These integrations mirror a broader surge in demand for throughout 2025.

The narrative has also expanded beyond crypto. BlackRock’s Larry Fink and Rob Goldstein recently said tokenization could reshape markets as deeply as the ahead internet altered information flows. Their comments reflect a year in which tokenized bonds, credit, treasuries and equities have drawn interest from both retail and institutions.

Standard Chartered projects that could reach $2 trillion by 2028, with most of the activity centered on ETH. Analysts at RedStone said rising appetite for tokenized yield products and onchain collateral has pushed growth further this year, especially as more protocols integrate tokenized securities into lending, trading and liquidity systems.

How Does the Deal Fit Kraken’s Broader Strategy?

Backed, founded in 2021, will continue supporting its current tokens as it moves under Kraken’s ownership. The acquisition gives Kraken the ability to expand tokenized-equity functionality across spot markets, collateral frameworks and future offerings once the integration is complete.

Kraken has been building toward this moment for several years. The company completed a in 2025 that valued it at about $20 billion and has been preparing for a U.S. IPO, which it confidentially filed earlier this year.

Alongside the IPO push, Kraken has closed major deals to broaden its regulatory reach and product footprint. These include:

• The purchase of the Small platform to develop a U.S. derivatives platform.
• The $1.5 billion acquisition of NinjaTrader — described as the largest crypto–TradFi deal to date.

Tokenized equities slot neatly into this expansion. By controlling issuance and settlement through Backed, Kraken can embed tokenized stocks more deeply into margin systems, structured products and its future derivatives offerings.

Investor Takeaway

Does This Push Tokenized Equities Toward the Mainstream?

Tokenized stocks remain a niche asset class, but momentum has shifted as infrastructure matures and . Backed’s model — issuing tokens only when the underlying securities are fully held — has become one of the more trusted approaches for bridging traditional assets and onchain markets.

Kraken’s acquisition adds a major platform to the list of firms embedding tokenized equities directly into their ecosystems. If the platform succeeds in scaling xStocks globally, tokenized shares could move beyond speculative trading and into collateral use, liquidity routing and multi-chain financial applications.

The timing also aligns with the surge in real-world-asset integrations across DeFi. Tokenized treasuries, credit instruments and equities are beginning to flow into lending markets and roll-up ecosystems, creating a feedback loop that pulls more traditional assets onchain.