Kraken Boosts Tokenized Stock Offerings with Backed Finance Deal

Kraken, a top crypto exchange, is boosting its role in the tokenized stock market by buying Backed Finance. The platform is well known for creating digital tokens that represent real-world assets like stocks and Exchange traded funds (ETFs). 

This deal shows Kraken’s focus on blending traditional investments with blockchain technology. 

Kraken Buys Backed Finance to Boost Tokenized Stocks

Backed Finance is the second-biggest platform for tokenized public stocks, with about 23% of the market. Kraken already provides stocks and ETFs from Backed Finance. 

Their main product, xStocks, gives access to over 60 tokenized stocks and ETFs on different blockchains, including BNB Chain. Each token is fully backed by the real underlying assets. 

With this deal, Kraken wants to make it easier for investors to access tokenized assets while focusing on long-term opportunities. In a recent statement, Kraken’s leadership says  the company is focusing on long-term investment strategies rather than short-term trends. 

The acquisition of Backed Finance is Kraken’s fifth purchase this year. In September, the company completed the acquisition of Breakout, a young but fast-growing crypto-native proprietary trading firm. 

These acquisitions make the crypto exchange’s broader strategy to build a full trading ecosystem for professional users. 

Tokenized Assets Market Gains Momentum

Kraken’s expansion into the tokenized real-world assets comes as the sector is growing rapidly. These tokenized products have gained attention from major financial companies. BlackRock, the world’s largest asset manager, has tokenized a money-market fund that now holds over $2.3 billion. 

Across the industry, many centralized exchanges have also launched tokenized stocks and ETFs this year. Europe’s biggest asset manager, Amundi recently rolled out its first tokenized money market funds on Ethereum blockchain. 

These instruments can be traded at any time and can also be used as collateral for other financial transactions. Expert has predicted that the tokenized real-world assets market could reach billion of dollars in the coming years 

Kraken Stays Focused on Growth Amid Crypto Market Volatility

Despite a recent decline in Bitcoin (BTC) and the broader crypto market, Kraken remains committed to growth. The company is working on investment opportunities that mix blockchain technology with real-world assets. 

This comes as more crypto companies are looking to go public. Companies like Circle Internet Group and Gemini Space Station have tried to launch IPOs this year. Notably, some have postponed because of market ups and downs.

Kraken has also shared its plans to go public in 2026, however, its  co-CEO Arjun Sethi recently made clear that the company sees no urgency in joining the IPO wave.