Takeaways by Saasverse AI
- Kraken | Acquisition | Undisclosed Amount | Tokenized Assets and RWA Market.
- Backed Finance AG drives Kraken’s xStocks, which achieved $10B trading volume in 6 months.
- Kraken aims to unify issuance, trading, and settlement, redefining financial infrastructure using blockchain.
Kraken, one of the leading cryptocurrency exchanges, has announced the acquisition of Backed Finance AG, the innovative team behind its tokenized stock product, xStocks. This strategic acquisition positions Kraken as a pioneering force in the tokenized asset space, aligning traditional finance with blockchain technology to deliver a seamless, global capital market infrastructure.
Backed Finance has been instrumental in the development of xStocks, a product that allows users to trade tokenized versions of over 60 stocks and ETFs, fully backed and pegged 1:1 to their underlying assets. In just six months, xStocks has achieved an astounding $10 billion in trading volume, underscoring the growing demand for tokenized real-world assets (RWAs). The tokens are currently live on Ethereum and Solana, with upcoming integrations planned for TON, Tron, Mantle, and BNB Chain. Investors can trade xStocks 24/7 on Kraken or directly on-chain, creating a continuous bridge between crypto and traditional markets.
Kraken’s acquisition of Backed Finance is more than a technological upgrade—it's a leap toward a unified financial ecosystem. By integrating Backed's tech stack and compliance framework, Kraken will enable a closed-loop infrastructure encompassing asset issuance, trading, and settlement. This move ensures transparency, reliability, and global accessibility for tokenized assets. According to Kraken’s co-CEO Arjun Sethi, “Integrating Backed fortifies the core architecture required for open and programmable capital markets. This lays the groundwork for the next era of market structure.”
Kraken's ambitions extend beyond tokenized trading. The company plans to integrate xStocks into its global payments app, Krak, enabling users to directly hold or even "spend" tokenized stocks. This revolutionary approach could allow a user to pay for a coffee using 0.1 shares of Apple stock, turning assets into currency and fundamentally redefining the concept of liquidity.
This acquisition also coincides with Kraken’s broader strategic growth initiatives as it prepares for a potential IPO next year, with its valuation recently reaching $20 billion. Kraken has been on an acquisition spree, purchasing the proprietary trading platform Breakout in September and the futures trading platform NinjaTrader earlier this year for $1.5 billion. These deals clearly reflect Kraken’s intention to evolve from a crypto exchange into a next-generation financial infrastructure provider, a vision that aligns with the tokenization initiatives of traditional financial giants like BlackRock and Franklin Templeton.
Saasverse Insights
Kraken’s aggressive move into tokenized assets signals a paradigm shift where traditional finance and blockchain technology are merging at an unprecedented pace. The $10 billion trading volume achieved by xStocks in just six months demonstrates that tokenized assets are no longer theoretical—they are meeting real liquidity demands. This marks a critical turning point as the market transitions from speculative cryptocurrency trading to the blockchain-based representation of high-quality, real-world assets.
The efficiency of blockchain as a settlement layer is poised to disrupt traditional financial infrastructure, such as SWIFT and DTCC, by significantly reducing costs and settlement times. Kraken’s vertical integration strategy positions it to deliver a financial infrastructure that is not only faster but also far more cost-effective than legacy systems.
Moreover, the boundaries between asset classes are beginning to blur. When stocks can serve as a medium of exchange, collateral, or even programmable financial instruments, the distinction between currency, equity, and commodities starts to dissolve. This creates a fertile ground for SaaS entrepreneurs to innovate around areas like tokenized asset payments, lending, and tax solutions.
Kraken’s acquisition of Backed Finance is not just about expanding its product line—it’s a decisive step toward redefining global financial infrastructure. The implications for the broader AI, SaaS, and Cloud ecosystem are profound, as tokenization opens up new opportunities for innovation, efficiency, and market participation.