Kraken Acquires Backed Finance to Launch Tokenized Stock Trading

Kraken, a regulated cryptocurrency exchange, announced the acquisition of Backed Finance, a provider of tokenization solutions converting traditional assets like stocks into digital tokens. The deal strengthens Kraken’s strategy to become an on-chain venue for tokenized assets and institutional services.

📣 We’re bringing @BackedFi, the company driving the issuance of xStocks, fully into Kraken.

Why? Because tokenized equities won’t reach global scale without unified rails.

With @xStocksFi now fully in-house, we’re accelerating the future of open, 24/7 capital markets 👇…

— Kraken (@krakenfx) December 2, 2025

The acquisition expands Kraken’s tokenization capabilities as the exchange positions itself to bridge crypto with traditional finance. Kraken currently provides stocks and ETFs issued by Backed and plans to integrate them more fully into its platform, according to Co-CEO Arjun Sethi.

The exchange has been pursuing European compliance initiatives to connect tokenized assets with traditional finance markets. Kraken is focusing on institutional access to tokenized assets through its expanding infrastructure.

Kraken Unifies Capital Markets Infrastructure

The acquisition unifies critical components of capital markets issuance, trading, and settlement into a single, interoperable framework. xStocks, the tokenized equities platform developed by Backed, achieved $10 billion in combined exchange and on-chain trading volume within six months of its 2025 launch.

This rapid adoption underscores demand for 24/7 trading, cross-chain interoperability, and institutional-grade compliance. Kraken now enhances these capabilities by integrating xStocks into its global product suite, including its money app.

The strategic alignment between Kraken and xStocks extends beyond operations to foundational infrastructure. By leveraging Kraken’s vertically integrated platform, spanning custody, exchange matching, and market data, the company can rapidly deploy new asset classes while maintaining regulatory compliance.

This synergy proves critical for scaling tokenized equities to new markets. Co-CEO Arjun Sethi emphasized the significance: “This integration redefines asset ownership in the digital era.”

The tokenized asset market is poised for exponential growth, driven by institutional demand for yield-bearing and liquid assets. Industry forecasts estimate the market will expand from $600 billion in 2025 to $18.9 trillion by 2033.

Kraken’s xStocks platform is already capitalizing on this trend, with over $3.84 billion in trading volume since its international launch in June 2025. The platform’s multi-chain strategy supports blockchains like Solana, ensuring flexibility and access to decentralized finance ecosystems.

$800 Million Funding Round Fuels Expansion

Earlier in November, Kraken secured $800 million in fresh funding to accelerate its expansion into traditional financial products on the blockchain. The capital arrived across two separate tranches at a $20 billion valuation.

We just announced that @krakenfx has raised $800M, a milestone that reflects years of work, discipline, and conviction. I am proud of what our team has built and grateful for the partners who chose to join us. But this is not a post about a fundraise. I want to share the side of…

— Arjun Sethi (@arjunsethi) November 18, 2025

Jane Street, DRW Venture Capital, HSG, Oppenheimer Alternative Investment Management, and Tribe Capital led the primary investment round. Co-CEO Arjun Sethi’s family office contributed a significant commitment alongside these institutional investors.

Citadel Securities executed an agreement for a subsequent $200 million strategic investment. The market-making firm will provide differentiated liquidity provision, risk management expertise, and market structure insights to Kraken.

The company’s vertically integrated infrastructure enables rapid deployment of new asset classes and features. Meanwhile, the platform maintains industry-leading security standards and regulatory compliance across its operations.

Citadel Securities President Jim Esposito expressed excitement about supporting Kraken’s growth trajectory.

We’re excited to support Kraken’s continued growth as it helps shape the next chapter of digital innovation in markets

Esposito said.

Following the investment, Kraken plans to scale global operations and deepen its regulated footprint across multiple jurisdictions. The exchange will expand its product suite through both organic development and targeted acquisitions.

Kraken intends to enter new markets across Latin America, Asia Pacific, and EMEA regions. The platform will broaden offerings beyond cryptocurrency to include additional asset classes and advanced trading tools.