Crypto exchange Kraken is set to expand its tokenized product offering after the firm revealed that it will acquire tokenized asset platform Backed Finance.

Kraken Strikes Deal to Acquire Backed Finance

Kraken has announced an agreement to acquire Backed Finance, a Switzerland-based firm specializing in the tokenization of real-world assets (RWA), as the exchange accelerates efforts to bring traditional financial instruments on-chain.

The company said the move aligns with a rapidly growing market for tokenized assets, which analysts project could reach trillions of dollars over the next decade, according to a Tuesday press release.

The acquisition is intended to fasten the global rollout of xStocks by consolidating issuance, trading, and settlement under a unified framework designed to support open, accessible capital markets. Kraken highlighted strong early momentum for xStocks, noting it surpassed $10 billion in combined exchange and on-chain trading volume within six months of its 2025 launch.

“This is foundational work for the next era of market structure. This is bigger than giving people exposure to US equities, it’s about redefining what it means to own assets in the digital era”, said Arjun Sethi, co-CEO at Kraken.

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Kraken Eyes Consumer Adoption With Tokenized Equities Integration

Kraken stated that Backed’s personnel and technology will be absorbed into the exchange following the acquisition, allowing it to improve internal capabilities for asset issuance, oversight, and compliance. The integration is also intended to push tokenized assets beyond crypto-native environments and into broader financial applications.

The exchange plans to embed xStocks within its product ecosystem, including Krak, its consumer finance app, so users can hold and spend tokenized equities alongside other digital assets. Kraken framed this as part of a longer-term effort to align tokenized markets with everyday financial behaviour rather than limiting them to trading venues.

“Integrating Backed into Kraken strengthens the core architecture required for open and programmable capital markets. Unifying issuance, trading, and settlement under one framework ensures the infrastructure for tokenized assets remains transparent, reliable, and globally accessible”, Arjun Sethi added.

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Tokenization Becomes Core Market Trend as Interests Surge

Tokenization has become one of 2025’s fastest-moving trends, turning traditional assets such as equities and bonds into digital tokens that can be traded and settled on blockchain networks. Interest in on-chain versions of conventional securities has accelerated as investors seek 24/7 access, fractional ownership, and faster settlement than traditional market rails can deliver.

The shift is already reshaping trading platforms. Kraken’s planned integration of Backed Finance and its xStocks product places the exchange among a growing group of firms building direct access to tokenized equities, alongside players such as Robinhood and Gemini. These services allow global users to trade tokenized stocks outside traditional market hours and without the high minimums or geographic restrictions that typically accompany equity investing.

BlackRock executives have publicly endorsed this shift. In a December 1 opinion piece for The Economist, CEO Larry Fink and COO Rob Goldstein described tokenization as the most significant structural change to finance since the 1970s, comparing its potential impact to the early days of the internet for enabling faster, intermediary-free settlement.

Speaking to CNBC, Fink said the industry is “at the beginning of tokenizing all assets”, and forecasted that every ETF will eventually be represented digitally. BlackRock’s BUIDL fund currently manages more than $4 billion in tokenized assets.

Conclusion

Kraken’s acquisition of Backed positions the exchange to compete aggressively in a fast-evolving market where tokenized assets are moving from niche products to mainstream financial infrastructure.

By integrating xStocks across its platform, Kraken aims to turn on-chain equities into everyday financial tools rather than speculative instruments. As tokenization accelerates globally, the deal gives Kraken a strategic foothold in what could become one of the most valuable segments of digital finance.