Kraken Acquires Backed Finance to Expand xStocks Tokenization

• Kraken will acquire Backed Finance AG to accelerate the expansion of xStocks.
• xStocks crossed $10 billion in volume within six months.
• Co-CEO Arjun Sethi also praised Kalshi’s recent fundraising at $11B valuation.

Crypto exchange Kraken formally agreed to acquire Backed Finance AG on Tuesday, executing a strategic pivot to own the infrastructure behind the booming tokenized asset sector. The deal brings the issuance, compliance, and settlement of xStocks – tokenized representations of real-world equities, entirely in-house, signaling Kraken’s intent to compete directly with traditional brokerage models.

According to Kraken co-CEO Arjun Sethi, the unification will lead to a more “transparent, reliable and globally accessible” offering for customers. He stated:

“This is bigger than giving people exposure to U.S. equities, it’s about redefining what it means to own assets in the digital era,” 

xStocks $10 Billion Validation

xStocks surpassed $10 billion in combined exchange and on-chain volume within six months of its 2025 debut. The product now offers access to more than sixty tokenized equities and ETFs, each tied directly to an underlying asset.

These tokens operate on Solana and Ethereum, with new chain integrations on the way. Traders gain round‑clock access either through Kraken or directly on-chain.

With the acquisition, Kraken wants to push xStocks into new territories. Backed will join Kraken’s infrastructure to strengthen issuance, improve compliance and debut a model which will place token holders at the center of economic benefit.

The company plans deeper integration of xStocks across its product suite, including Krak, the exchange’s global money app.

Related: Kraken CEO: $800M Raise Driven by ‘Conviction’ After FTX 2.0 Rejection

Kraken and Backed already maintain the xStocks Alliance, a network of partners from trading venues, blockchain foundations and consumer platforms. The acquisition will widen this alliance to support greater liquidity and cross‑chain composability.

Kraken added that tokenized markets must remain open rather than confined to proprietary platforms and argued that neutral standards enable scale, innovation and direct user control.

Co-CEO Praises Kalshi

Sethi also applauded Kalshi’s $1 billion raise at an $11 billion valuation. He said that prediction markets now appear ready to mature into essential tools for individuals and institutions, driven by better liquidity, infrastructures and stronger incentive models.

“We are starting to see the financialization of information become real,” Sethi said while stating that there is a “lot more to build” in the digital asset space. Regarding Backed acquisition, Sethi added that Kraken plans to “recreate the limits of legacy finance with new branding.”

Related: Wall Street Heavyweights Back Kraken’s IPO Bid With $800 Million Investment