Kraken Acquires Backed Finance to Accelerate Tokenization Efforts

Kraken, a major U.S. cryptocurrency exchange, has acquired Backed Finance AG, a platform specializing in bridging traditional assets with decentralized finance (DeFi). This move signals Kraken's commitment to tokenization and its vision for a future where all assets can be traded digitally, anytime, anywhere.

Backed Finance facilitates the tokenization of real-world assets, allowing them to be represented on blockchains like Ethereum and Solana. These tokenized assets, known as xStocks, can then be traded on crypto networks.

Kraken has been collaborating with Backed Finance this year to offer tokenized stocks and ETFs to its users. This acquisition will integrate Backed's technology directly into Kraken's platform, streamlining the issuance, trading, and settlement of tokenized assets.

Key Takeaways:

• Tokenization Push: Kraken is aggressively pursuing tokenization to bring traditional assets onto blockchain networks.
• Strategic Acquisition: Backed Finance's technology will enhance Kraken's ability to offer tokenized stocks and ETFs.
• Future Vision: Kraken aims to create an "institutional-grade trading platform" for all asset types.

Kraken's Expansion Strategy

This acquisition is the latest in a series of strategic moves by Kraken as it prepares for a potential public offering. Earlier acquisitions include proprietary trading platform Breakout and futures trading platform NinjaTrader.

Kraken's co-CEO, Arjun Sethi, believes that traditional financial markets are outdated and that tokenization is the future. He envisions a market where asset ownership is redefined in the digital era.

Tokenization Gaining Traction

Interest in tokenization is growing among traditional finance firms. BlackRock CEO Larry Fink has spoken extensively about the transformative potential of tokenization, and the company now offers a tokenized money-market fund. Franklin Templeton has also been actively tokenizing assets on various blockchains for years.