Kraken Completes Acquisition of Backed Finance AG

Kraken has finalized its acquisition of Backed Finance AG, a Swiss company responsible for operating xStocks. This strategic move signifies another significant addition to Kraken's acquisition activities for 2025, bringing the issuance of tokenized equities directly under the cryptocurrency exchange's operational control.

Integration of xStocks Infrastructure

The acquisition grants Kraken complete ownership of the xStocks infrastructure, which specializes in creating tokenized versions of publicly traded stocks and exchange-traded funds. This integration is expected to provide Kraken with enhanced control over the issuance, trading, and settlement processes across its diverse product offerings, including its global money application.

Expansion Plans for xStocks

Kraken intends to broaden the support for xStocks to encompass additional blockchains and international markets. Currently, the platform operates on the Solana and Ethereum networks, featuring over 60 tokenized products available for trading around the clock. Since its inception earlier this year, xStocks has facilitated more than $10 billion in combined exchange and on-chain trading volume.

Tokenized Assets and Market Testing

The tokenized assets offered through xStocks can be self-custodied and transferred across various networks. Kraken initially introduced Backed's xStocks product to eligible European users in September, a move designed to gauge market interest before proceeding with the full acquisition.

Consolidating the xStocks Alliance Network

Kraken also manages the xStocks Alliance, a network designed to connect partnered blockchain networks and trading venues. The exchange has indicated that this acquisition will serve to consolidate this network and improve interoperability as more markets embrace tokenized equities. The specific financial terms of the deal were not disclosed by either company.

Kraken's Acquisition Strategy

In line with its strategic growth, Kraken submitted a confidential filing for a U.S. IPO in November and has been actively pursuing acquisitions throughout the year. Prior to this latest deal, Kraken acquired NinjaTrader in May, followed by the proprietary trading platform Breakout in September, and the designated contract market Small Exchange in October.

The Growing Trend of Tokenized Equities

The emergence of tokenized equities has been a significant trend in 2025. In June, xStocks was launched on platforms such as Bybit, Kraken, and several Solana-based DeFi platforms, offering tokenized versions of prominent stocks including Netflix, Meta, Coinbase, Amazon, Nvidia, McDonald's, Apple, Tesla, and Microsoft.

Robinhood's Entry into Tokenized Stock Trading

That same month, Robinhood launched its own layer-2 blockchain on Arbitrum, enabling tokenized stock trading for users in the European Union. This platform provides access to over 200 U.S. stock and ETF tokens, tradable 24/5 without commission fees.

Market Data for Tokenized Stocks

According to data from Dune Analytics, Robinhood now features 943 tokenized stocks and ETFs on Arbitrum, with a total on-chain value of approximately $10.8 million. RWA.xyz tracks roughly $656 million in regulated tokenized public stocks, reporting $1.14 billion in monthly transfer volume and approximately 118,000 holders. Among regulated issuers, Ondo holds about 52% of the market share, followed by Backed Finance at 24% and Securitize at 20%.