Points of Focus

• Kraken acquires Backed Finance, issuer of xStocks tokenized equities.
• Move builds on existing partnership and supports Kraken’s upcoming IPO.
• Aims to expand tokenized stock access globally through Kraken’s platform.

Kraken announced on December 2, 2025, that it has agreed to acquire Backed Finance AG, the Swiss firm behind the xStocks platform for tokenized equities and ETFs, in a move to unify issuance, trading, and settlement under one roof as the exchange prepares for a public listing next year.

The deal, with terms still undisclosed, builds on a May partnership that brought xStocks, 1:1 backed representations of over 60 U.S. stocks and ETFs like Apple, Tesla, and Nvidia, to Kraken’s U.S. and European clients. Since June, xStocks has generated $10 billion in combined exchange and on-chain volume across Ethereum and Solana, with expansions to TON, Tron, Mantle, and BNB Chain planned soon. Kraken aims to integrate the assets into its global money app, Krak, enabling self-custody and 24/7 trading.

Tokenized equities need real infrastructure to grow.@BackedFi is becoming part of @krakenfx to elevate tokenized equities to a new level. Backed and Kraken have worked closely since the inception of xStocks, from idealization, to launch, to expansion. Every time we joined… pic.twitter.com/1p3HXew2Qg

— xStocks (@xStocksFi) December 2, 2025

Backed, founded in 2021, holds about 23% of the global tokenized equities market. Co-founder Adam Levi said the acquisition provides “capital and resources to scale faster,” accelerating adoption amid projections of $18 trillion in tokenized real-world assets by 2033, per Ripple and BCG. Kraken co-CEO Arjun Sethi added: “This foundational work redefines asset ownership in the digital age.”

The purchase comes on the heels of Kraken’s IPO filing and $800 million raise in November at a $20 billion valuation, including $200 million from Citadel Securities, and caps a busy year of acquisitions. NinjaTrader in May, Breakout in September, and Small Exchange in October. The deal positions Kraken as the first major exchange to own the full tokenized equities stack, bridging TradFi and crypto while navigating regulatory hurdles like SEC scrutiny on tokenized securities.

For tokenization advocates, the deal signals maturing infrastructure, though U.S. retail access remains limited.