Kraken buys Backed Finance to bring xStocks tokenized equities in‑house
Kraken has agreed to acquire Backed Finance AG, the issuer behind xStocks, consolidating tokenized equities issuance, trading and settlement into its exchange and global money app. xStocks offers 60+ tokenized stocks and ETFs, live on Solana and Ethereum, with 24/7 on‑chain trading and self‑custody options. Since launch, xStocks has amassed tens of thousands of holders and recorded over $10–12 billion in combined exchange and on‑chain volume, with daily on‑chain activity in the tens of millions and roughly $175 million reported AUM in earlier reports. Kraken plans to integrate xStocks across its platform, extend support to more blockchains and markets, and fold the xStocks Alliance of chains and trading venues into its ecosystem to improve interoperability and liquidity. Terms were not disclosed. The acquisition follows Kraken’s strong recent performance and a series of 2025 purchases (including NinjaTrader, Breakout and Small Exchange) as the firm scales regulated real‑world assets (RWA). For traders: the deal could increase on‑platform liquidity and institutional access to tokenized equities, concentrate issuance and secondary trading on Kraken, and raise regulatory and custody considerations as tokenized stocks move from an independent issuer to a major regulated exchange.
Bullish
Positive for on‑chain tokenized equities and Kraken’s market position. Consolidating xStocks into Kraken should increase on‑platform liquidity, streamline issuance and secondary trading, and attract more institutional and retail flows to tokenized stocks. Short term, the announcement can boost trading volumes on Kraken and on supported chains (SOL, ETH) as users migrate or test integrated flows; volatility may rise around migration and custody changes but price action for related tokens (SOL, ETH) is likely to be modestly positive due to increased on‑chain activity. Long term, centralizing issuance within a regulated exchange can enhance trust and access, supporting broader adoption of RWA tokenization and steady fee revenue for Kraken. Risks include regulatory scrutiny and integration execution; if regulators push back or integration reduces decentralization, sentiment could turn negative. On balance, benefits to liquidity and adoption make the immediate market impact bullish for the involved platforms and their tokens.