TLDR
- Kraken is buying Backed Finance AG, which runs the xStocks tokenized stock platform
- The xStocks platform has generated $10 billion in trading volume since its 2024 launch
- Kraken already offers xStocks to European users and will now own the entire platform
- This marks Kraken’s fourth major purchase in 2025 as it prepares for a public offering
- The tokenized stock market has grown to $656 million with over 118,000 holders
Kraken announced Tuesday it will purchase Backed Finance AG, bringing the xStocks tokenized stock platform under full ownership. The acquisition extends Kraken’s aggressive expansion strategy in 2025 as the exchange prepares for its initial public offering.
Backed Finance created xStocks, a service that turns traditional stocks and ETFs into blockchain-based tokens. Users can trade these digital versions of real stocks around the clock on networks like Ethereum and Solana. The platform currently features more than 60 tokenized investment products.
Since launching in early 2024, xStocks has processed over $10 billion in total trading volume. The tokens represent ownership in major companies including Apple, Tesla, Microsoft, Amazon and Netflix. Users can hold these assets in their own wallets and transfer them across different blockchain networks.
Kraken first partnered with Backed Finance in September to offer xStocks to eligible users in Europe. The exchange will now integrate the issuance and trading systems directly into its infrastructure. Plans include expanding the service to more blockchains and geographic markets.
Financial terms of the deal were not disclosed. Kraken co-CEO Arjun Sethi said the purchase strengthens the core architecture needed for programmable capital markets. He described it as redefining what it means to own assets in the digital era.
Fourth Acquisition of the Year
Kraken has been actively acquiring companies throughout 2025. The exchange bought futures platform NinjaTrader for $1.5 billion in May. It followed with the purchase of trading platform Breakout in September and derivatives marketplace Small Exchange in October.
The buying spree comes after Kraken filed confidential paperwork with US regulators in November for a potential stock market listing. Sethi previously said the company wants to build an institutional-grade platform where any asset can trade at any time.
Kraken operates the xStocks Alliance, a network connecting different blockchains and trading venues. The company said owning Backed Finance will help consolidate this network and improve liquidity across markets offering tokenized stocks.
Tokenized Stock Market Expansion
Multiple platforms have launched tokenized stock services in 2024. Robinhood introduced its own version in June with a layer-2 blockchain on Arbitrum. The platform now offers 943 tokenized stocks and ETFs to European users with zero commission fees.
Data from Dune Analytics shows Robinhood’s tokenized products have a total onchain value of $10.8 million. Trading runs 24 hours a day, five days a week on the platform.
The broader regulated tokenized stock market has reached $656 million in total value according to RWA.xyz. Monthly transfer volume stands at $1.14 billion with approximately 118,000 people holding these digital assets.
Among regulated issuers, Ondo controls about 52% of the market. Backed Finance holds a 24% share while Securitize accounts for 20%. These companies create blockchain versions of traditional securities that comply with financial regulations.
XStocks launched on several platforms in June including Bybit and multiple Solana-based decentralized finance services. The initial product lineup featured tokenized versions of blue-chip stocks from companies like Meta, Coinbase, Nvidia and McDonald’s.
Kraken’s purchase of Backed Finance positions the exchange to compete directly in the growing tokenized securities market as more investors seek 24/7 access to traditional stock markets through blockchain technology.
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