Kraken, one of the world’s longest-standing cryptocurrency platforms, has acquired Backed Finance AG, a Swiss startup specializing in tokenizing real-world assets, for an undisclosed amount. This strategic purchase marks Kraken’s expansion into bridging traditional financial instruments with blockchain technology.
Backed Finance AG issues ERC-20 tokens that track the value of real-world assets such as stocks and exchange-traded funds (ETFs). These "xStocks" are designed to be freely transferable across wallets, fully collateralized by their underlying assets, and issued in compliance with the Swiss DLT Act. The company's technology enables composable tokenized securities, providing a compliant framework for on-chain investing.
Kraken operates a global platform where clients trade over 200 digital assets and six national currencies, with a mission to accelerate the global adoption of crypto for financial freedom and inclusion. The acquisition of Backed Finance strategically aligns with this mission by enabling Kraken to integrate tokenized versions of real-world assets into its ecosystem. This move broadens Kraken’s product offerings beyond traditional cryptocurrencies, catering to a growing demand for compliant, blockchain-based access to diverse asset classes.
The combination of Kraken's secure, established trading platform and Backed Finance's specialized expertise in asset tokenization and regulatory compliance is expected to create significant synergies. Backed’s technology and adherence to the Swiss DLT Act provide a robust framework for bringing traditional assets on-chain, while Kraken offers the market reach and operational infrastructure. This integration is anticipated to facilitate the development of new financial products and increase accessibility to tokenized real-world assets for a wider audience, further advancing the utility and adoption of blockchain in global finance.