U.S. crypto exchange Kraken is expanding its reach into tokenized finance with the acquisition of Backed Finance AG, the company announced Tuesday.
The deal positions Kraken to accelerate adoption of “xStocks,” securities already trading on blockchain-based markets.
Cheyenne, Wyoming-based Kraken has been collaborating with Backed this year to offer tokenized stocks and ETFs using networks like Ethereum and Solana. Tokenization also allows real-world assets to be represented on-chain through digital tokens, making them easier to trade and track.
“Bringing Backed into Kraken strengthens the foundation needed for open and programmable capital markets,” said co-CEO Arjun Sethi. He added that combining issuance, trading and settlement in a single framework keeps tokenized assets transparent, reliable and accessible worldwide.
Kraken has pursued multiple acquisitions in preparation for a public offering. In September, it acquired the proprietary trading platform Breakout for an undisclosed sum. Earlier this year, it purchased futures trading platform NinjaTrader for USD$1.5 billion.
Sethi also noted that traditional markets operate on decades-old banking systems, and Kraken aims to offer an institutional-grade platform where virtually any asset can be traded at any time. He described the Backed acquisition as a move toward redefining asset ownership in the digital era, not just providing exposure to U.S. equities.
Interest in tokenization is growing among established finance firms. BlackRock Inc. (NYSE: BLK) CEO Larry Fink has repeatedly discussed its potential to transform capital markets. The firm recently launched a tokenized money-market fund. Similarly, Franklin Templeton Investments has been placing assets on multiple blockchains for several years.
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Forecasts vary depending on definitions
Tokenized markets could create more flexible and efficient trading options. Additionally, they offer new ways for investors to manage and monitor ownership digitally. Kraken’s efforts suggest that major crypto exchanges are moving to compete with traditional financial infrastructure.
Furthermore, integrating Backed may allow Kraken to unify its crypto and equity offerings under one platform. Consequently, clients could experience smoother trading of both tokenized and conventional assets.
Additionally, forecasts for the tokenization market vary depending on how it is defined.
A 2025 report by Skynet predicts the tokenized real world asset market could reach USD$16 trillion by 2030, driven by growing institutional adoption and decentralized finance integration.
However, McKinsey & Company offers a more conservative estimate, expecting tokenized assets to exceed USD$2 trillion by 2030, with a potential range of USD$1 to 4 trillion depending on market uptake.
Meanwhile, Polaris Market Research projects the broader asset tokenization market, which includes real estate, art, collectibles and financial instruments, will reach USD$30.21 billion by 2034.
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