Kraken Acquires Backed Finance as xStocks Tokenized Equities Surpass $10 Billion Volume

Cryptocurrency platform Kraken announced its acquisition of Backed Finance AG, the tokenization platform behind xStocks, on December 2, 2025. The strategic move aims to accelerate the global adoption of xStocks, which has already seen over $10 billion in combined exchange and on-chain trading volume, solidifying Kraken's leadership in the burgeoning tokenized asset market.

Backed Finance, founded in 2021, developed xStocks as a leading standard for tokenized equities, offering exposure to over 60 assets backed 1:1 by underlying securities. These tokens are live on Solana and Ethereum, enabling 24/7 trading on Kraken or directly on-chain. The acquisition unifies issuance, trading, and settlement under one framework, enhancing open capital markets infrastructure.

Kraken Co-CEO Arjun Sethi stated, "Integrating Backed into Kraken strengthens the core architecture required for open and programmable capital markets." He emphasized the deal's significance beyond simply offering U.S. equities, aiming to redefine asset ownership in the digital era. The acquisition provides Backed with capital and resources to scale faster amid surging institutional demand.

Backed co-founder Adam Levi highlighted the team's focus on building a compliant and scalable solution that bridges crypto and traditional finance. He noted that with Kraken's scale, the vision to democratize financial access globally can be accelerated. The Backed team and infrastructure will become part of Kraken, strengthening issuance and compliance capabilities.

This marks Kraken's fifth acquisition in 2025, following NinjaTrader, Breakout, and Small Exchange, underscoring an aggressive expansion strategy. The company, recently valued at $20 billion after a funding round, is preparing for a public listing in 2026. This series of acquisitions positions Kraken to expand tokenized equities and other real-world assets globally.

Kraken plans to integrate xStocks more deeply into its product suite, including its global money app, Krak, allowing customers to hold and spend in tokenized equities. It is important to note that xStocks have not been registered under U.S. securities laws and are not available in the United States or to U.S. persons. This acquisition lays the groundwork for future innovation in tokenized assets beyond equities.