Kraken has acquired Backed Finance, the issuer behind its xStocks platform for tokenized stocks. This acquisition solidifies Kraken’s commitment to expanding access and functionality in this sector. Backed, a leading provider in the on-chain equities market, currently issues tokens tied directly to 71 public equities and ETFs, representing a significant share of the market. This move brings control of issuance, custody flow, and collateral rules in-house, allowing Kraken to integrate tokenized stocks more deeply into its existing infrastructure. 2025 saw expansion across the U.S., Europe, and to other blockchain networks like Tron, BNB Chain, and Solana. With this acquisition, Kraken moves towards a robust market position for tokenized stocks, positioning it to become a major player in this new financial landscape. 2026 is expected to see Kraken’s IPO, which will be bolstered by the integration of tokenization. The company has been actively expanding its regulatory footprint and product offerings through strategic acquisitions like the Small Exchange (U.S. derivatives platform) and NinjaTrader, a record-breaking crypto-TradFi deal. Backed’s model of issuing tokens only when underlying securities are fully held provides a trustworthy bridge between traditional assets and on-chain markets. As tokenization gains momentum, this acquisition could propel tokenized equities into mainstream financial applications such as margin systems, structured products, and futures trading.