Kraken has announced its intent to acquire Backed Finance, the company behind the xStocks platform, in a move that signals a significant expansion in the tokenized equities market. This acquisition is poised to bring a substantial increase in the number of tokenized assets available on the platform, with plans to list 71 different assets. The combined entity aims to facilitate a trading volume of $5 billion and will implement a multi-chain rollout strategy.
The acquisition is a strategic step for Kraken as it looks to solidify its position in the rapidly growing market for tokenized securities. Backed Finance has established itself as a key player in this space, and its integration into Kraken's ecosystem is expected to accelerate the adoption of tokenized equities by a wider audience. The company has also expressed ambitions for an initial public offering (IPO) by 2026, indicating a long-term vision for growth and market leadership.