Kraken Continues Acquisition Spree with Purchase of Backed Finance Kraken, one of the world’s leading cryptocurrency exchanges, has extended its 2025 buying streak with a new strategic acquisition. The company has finalized a deal to purchase Backed Finance, a prominent issuer of tokenized real-world assets. This move grants Kraken full ownership and operational control of Backed’s flagship product, the xStocks platform for tokenized equities. The acquisition represents a significant deepening of Kraken’s commitment to the regulated real-world asset, or RWA, sector. By bringing the xStocks platform in-house, Kraken directly integrates a proven infrastructure for creating and managing blockchain-based tokens that represent ownership in traditional financial instruments, specifically shares of major publicly traded companies. The xStocks platform allows users to gain exposure to traditional equities like Apple or Tesla through tokens on the blockchain. These tokens are fully backed by the actual underlying securities, which are held in custody with a regulated Swiss bank. This model aims to combine the familiarity of traditional stock investing with the potential benefits of blockchain technology, such as extended trading hours and streamlined settlement. For Kraken, the purchase is a clear play to capture a share of the rapidly growing tokenized assets market. Industry analysts have long predicted that bringing traditional financial assets on-chain represents a multi-trillion dollar opportunity. By acquiring an established player like Backed, Kraken bypasses years of internal development and regulatory navigation, instantly gaining a compliant European foothold in this competitive arena. The integration of Backed’s technology and expertise is expected to accelerate the development and rollout of Kraken’s own RWA offerings. A spokesperson for the exchange indicated that the immediate focus will be on enhancing the existing xStocks product line and exploring its expansion to new markets and client bases. The long-term vision likely involves weaving tokenized equities and other RWAs seamlessly into the broader Kraken ecosystem, potentially offering them alongside cryptocurrencies and other digital assets in a unified trading experience. This acquisition is the latest in a series of strategic purchases by Kraken throughout 2025, signaling an aggressive growth strategy that extends beyond organic development. The exchange appears to be building a comprehensive financial services platform, moving from a pure-play crypto venue towards a broader hub for both digital and tokenized traditional finance. The move also highlights the increasing convergence between traditional finance and the crypto industry. As major institutions show growing interest in blockchain-based asset representation, infrastructure providers like Backed become highly valuable assets. Kraken’s purchase underscores the competitive race among crypto-native exchanges to establish dominance in this emerging hybrid financial landscape. Regulatory compliance remains a central pillar of this expansion. Backed Finance operates under Swiss regulatory oversight, providing Kraken with a established framework for handling securities tokens. This existing compliance structure is a key asset, as navigating the global patchwork of securities laws is one of the primary challenges for any platform dealing with tokenized equities. The reaction from the crypto community has been largely positive, with many observers viewing the acquisition as a validation of the RWA narrative and a smart strategic pivot for Kraken. The exchange is positioning itself not just as a place to trade speculative digital assets, but as a gateway to a future where all types of value are represented and exchanged on blockchain networks. As the integration proceeds, the industry will be watching to see how quickly Kraken can leverage its new acquisition to launch products and capture market share in the increasingly crowded race to tokenize the world’s assets.
