The crypto world is evolving rapidly, with an increasing number of traditional financial products like stocks and funds being converted into digital tokens on the blockchain. Kraken is now making a major move in this direction by acquiring the Swiss-based firm Backed Finance. The company specializes in creating tokenized stocks and ETFs, a market that Ripple and BCG predict could grow to $18 trillion over the next decade.
Kraken Wants to Grow with Tokenization #
Kraken had previously collaborated with Backed Finance through its xStocks service. This platform enables the trading of digital versions of real-world stocks. These tokens can be traded 24/7, a feature not available in traditional stock markets.
Since its launch in June, the service has already issued over $170 million in tokens and has facilitated more than $2.3 billion in onchain trading volume.
By fully acquiring Backed, Kraken aims to further develop this emerging market. Co-CEO Arjun Sethi stated that having a single system for issuing and trading these tokens is crucial for providing greater clarity and security.
The acquisition is part of a broader expansion phase for Kraken. The company is preparing for an initial public offering (IPO) and has already acquired several other firms this year, including NinjaTrader and Small Exchange. Analysts on social media have responded positively to these developments, with one user calling it Kraken’s strongest growth phase in years:
.@krakenfx has quietly entered its strongest expansion phase in years.
– Raises $800M at a $20B valuation – Files a confidential S-1 the next day – Announces acquisition of Backed Finance, issuer of xStocks
The numbers tell the story:
Kraken has held roughly 3% spot market…
— Alex (@x0wes) December 3, 2025
Growth of Real-World Assets #
The acquisition also aligns with a rapidly growing trend: more companies are bringing real-world assets (RWAs) to the blockchain. This makes trading faster, cheaper, and more accessible. The market for RWAs is already valued at nearly $400 billion and is expanding quickly.
Kraken is in a strong growth phase. In a recent discussion, Julian Maddocks, a seven-year veteran of the exchange, explained how Kraken handles extreme market stress. He detailed how teams collaborate during market crashes and how the exchange maintains system stability when thousands of users are trading simultaneously. Through proof-of-reserves and independent audits, customers can always verify the security of their funds.
With the acquisition of Backed Finance, Kraken strengthens both its technological foundation and its position in the fast-growing RWA market. The exchange is taking a clear step toward a future where traditional financial products are traded onchain with greater security and transparency.