Kraken to buy Backed Finance in tokenization push ahead of IPO

Crypto exchange Kraken has agreed to acquire Backed Finance, the issuer behind its xStocks tokenized offering, as part of its strategy to deepen its involvement in the rapidly growing tokenization sector ahead of a planned 2026 IPO. Backed Finance, the second-largest provider of tokenized public stocks, issues on-chain representations of assets like equities and ETFs, backed one-for-one by the underlying securities. This acquisition formalizes an existing partnership, as Backed has powered Kraken's xStocks, which have generated over $5 billion in cumulative trading volume. Bringing Backed in-house will give Kraken tighter control over tokenized equities for integration across its spot markets and other products. The move aligns with broader industry trends, as executives like BlackRock's Larry Fink predict tokenization will profoundly reshape financial markets, with projections estimating the tokenized real-world asset market could reach $2 trillion by 2028.

(Source：The Block)