Simply put
- Kraken, the cryptocurrency exchange, has acquired Backed Finance, a platform specializing in tokenized assets.
- This marks one of several acquisitions by Kraken this year.
- The company has plans to go public soon.
Kraken, the U.S.-based cryptocurrency exchange, announced on Tuesday its acquisition of Backed Finance AG, which aims to further enhance tokenization efforts.
Operating out of Cheyenne, Wyoming, Kraken stated that the partnership with Backed, a service that links traditional stocks with decentralized finance, will help “accelerate the global adoption of xStocks.” This feature lets existing securities be made available on the blockchain.
This year, Kraken and Backed are working together to provide clients with tokenized stocks and ETFs, utilizing cryptocurrency networks like Ethereum and Solana. Essentially, tokenization is about taking real-world assets and representing them digitally on the blockchain.
“By integrating Backed into Kraken, we enhance the fundamental structure needed for open and programmable capital markets,” said Kraken co-CEO Arjun Sethi in a statement.
Sethi added, “Bringing issuance, trading, and settlement under one roof guarantees that the framework for tokenized assets is transparent, trustworthy, and accessible globally. This lays the groundwork for the upcoming era of market structures.”
Details regarding the financial specifics of the deal were not disclosed.
Earlier this year, Kraken has been busy with acquisitions in preparation for an initial public offering. In September, it finalized a deal for Breakout, a proprietary trading platform, although the terms were not shared publicly. Additionally, the company acquired NinjaTrader, a futures trading platform, for about $1.5 billion.
Sethi mentioned that traditional markets are still operating under outdated banking systems, specifically referencing a post-World War II framework. He expressed the company’s ambition to create an “institutional-grade trading platform where any asset can be traded at any time.”
On Tuesday, he emphasized that this acquisition goes beyond merely offering access to U.S. stocks; it “redefines what it means to own assets in the digital era.”
Interest from traditional financial institutions in tokenization has surged lately. For instance, Larry Fink, head of BlackRock, has often highlighted how tokenization is transforming capital markets, noting the emergence of tokenized money market funds. Moreover, Wall Street heavyweight Franklin Templeton has been actively tokenizing assets across various blockchains for several years.
