Crypto Exchange Kraken Acquires Backed Finance, Eyes 2026 IPO

Cryptocurrency exchange Kraken has made a significant move. The exchange announced on December 2, 2025, that it has acquired Swiss company Backed Finance AG, which issues tokenized assets. The acquisition helps connect traditional finance with blockchain technology, allowing Kraken to enhance its offerings in tokenized assets.

While the financial terms of the acquisition have not been disclosed, the move underscores Kraken’s commitment to a multi-asset approach, following other recent acquisitions such as NinjaTrader and Breakout.

Backed Joins Kraken Forces

The acquisition includes Backed’s xStocks suite. It features over 60 tokenized U.S. equities and ETFs fully backed by the respective underlying assets. With Backed holding about 23% of the public stock tokenization market, the deal, like others, amplifies Kraken’s ambitions as it prepares for a planned IPO in 2026.

Kraken plans to use Backed’s technology to include compliant tokenized securities on its global trading platform. Backed Finance issues blockchain-based tokens that represent shares in well-known companies like Apple, Tesla, and Nvidia. Each token can support secure assets and be traded across various blockchain networks.

The acquisition allows Kraken to directly handle the creation, distribution, and trading of these tokenized assets. Co-CEO Arjun Sethi emphasized that the focus is on building strong infrastructure rather than on speculative trading.

“This is foundational work for the next era of market structure. This is bigger than giving people exposure to U.S. equities; it’s about redefining what it means to own assets in the digital era,” he said.

Strategic Move Pre-IPO Push

Backed, founded in 2021, quickly became a top regulated issuer of real-world assets in Europe. Its tokens can be traded on Kraken for eligible clients outside the U.S. The acquisition eliminates the need for third parties and enables Kraken to launch new products worldwide faster. The integration process will start immediately, and new offerings are expected to begin in early 2026.

The strategic acquisition comes shortly after Kraken successfully raised $800 million at a valuation of $20 billion, backed by significant investors, including Citadel Securities. The exchange’s aggressive acquisition strategy in 2025 underscores its ambition to remain a leader in the market, especially as tokenized real-world assets gain traction.

As more institutions look to benefit from 24/7 settlement and fractional ownership, Kraken’s ownership of Backed strengthens its position in this growing area. The decision also improves Kraken’s reputation by meeting Swiss licensing standards. This could lead to more consolidation in the competitive on-chain capital markets.

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