Kraken makes a bold move in the realm of tokenization. The American exchange has announced the acquisition of Backed Finance, a Swiss specialist in tokenized assets, as RWA emerge as one of the most dynamic segments in digital finance. The deal, whose amount has not been disclosed, is part of an aggressive strategy as Kraken’s IPO approaches.
Tokenized Stocks and ETFs Soon to be Integrated Natively at Kraken
Backed Finance is already a key partner of Kraken. The two companies launched in June xStocks, an offer of tokenized stocks backed by real securities held in Switzerland. Since its launch, xStocks has issued over $170 million in tokens representing traditional shares and recorded $2.3 billion in on-chain volume, according to Dune.
The acquisition will allow Kraken to directly integrate these products into its market architecture. The exchange will be able to offer unified access to the issuance, trading, and settlement of tokenized assets. An infrastructure designed to be transparent, programmable, and open 24/7, far from the constraints of traditional finance.
For Arjun Sethi, co-CEO of Kraken, Backed reinforces the necessary foundations for “open and programmable capital markets.”
An Acquisition that Fits into a Series of Strategic Operations
Kraken is ramping up its consolidation moves ahead of its IPO. This year, the platform acquired NinjaTrader ($1.5 billion), Small Exchange ($100 million), and Breakout, a prop trading company. In November, a funding round led by Citadel Securities brought in an additional $800 million, raising Kraken’s valuation to $20 billion.
With Backed Finance, Kraken gains access to technology that is compliant with European regulations, structured to issue and retain tokenized traditional assets. A major asset in a market where compliance barriers still hinder adoption.
Tokenization, a Market Estimated at $18 Trillion by 2033
The acquisition comes as the tokenization of RWA takes on a macroeconomic dimension. More and more players, banks, asset managers, exchanges, are moving bonds, stocks, and funds onto blockchain rails to benefit from efficiency gains: instant settlement, global distribution, and operational automation.
According to a Ripple and BCG report, the tokenized assets market could reach $18 trillion by 2033. Kraken clearly aims to capture a share of this growth and position itself as one of the pillars of this new infrastructure.
With Backed Finance under its wing, the exchange takes a decisive step. The message sent to the market is clear: Kraken doesn’t just want to accompany tokenization. It wants to be one of its main architects.
