Kraken announced the full acquisition of Backed Finance AG. The deal positions the exchange as the key operator of xStocks, the industry standard for tokenized securities. Kraken now secures its own rails for issuance, trading, and settlement to scale the product globally without relying on intermediaries.
The xStocks protocol launched in early 2025 and surpassed the $10 B mark in trading volume within six months. The platform currently lists over 60 instruments — stocks and ETFs backed 1:1 by real assets. Trading is live on Solana and Ethereum, with integrations for TON, Tron, Mantle, and BNB Chain coming next.
Kraken Co-CEO Arjun Sethi says xStocks flips the profit distribution model. The protocol generates revenue through securities lending. While custodians and brokers typically pocket these fees in traditional finance, Kraken intends to return these rewards directly to token holders.
The company philosophy is that economic value should belong to the asset owner.
"If tokenization moves toward closed environments, the industry will simply recreate the limits of legacy finance with new branding. Instead, Kraken is betting on open architecture and interoperability," — Sethi emphasizes.
With this acquisition, Kraken consolidates all necessary technologies under one roof. Control over custody, settlement, and data empowers the exchange to launch new products faster, removing the dependency on external gatekeepers.
Read also:
- Kraken Acquires Small Exchange for $100M to Expand U.S. Derivatives Business
- Kraken Launches xStocks in EU – Users Gain Access to Tokenized US Stocks
- Kraken to Launch 24/7 Trading of Tokenized Apple, Tesla, and Nvidia Stocks
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