Kraken, a prominent cryptocurrency platform, has acquired Backed Finance, a Swiss startup specializing in tokenizing real-world assets, for an undisclosed amount. This corporate acquisition signifies Kraken's strategic move to integrate traditional financial instruments onto blockchain technology, expanding its offerings beyond native digital currencies.
Backed Finance is known for bridging real-world assets on-chain by issuing ERC-20 tokens that track the value of instruments such as stocks and ETFs. These tokenized assets, like its xStocks, are freely transferable, fully collateralized by their underlying assets, and operate in compliance with the Swiss DLT act. Kraken, one of the world’s longest-standing and most secure crypto platforms, aims to accelerate the global adoption of crypto and empower financial freedom, enabling clients to trade over 200 digital assets and multiple national currencies.
The acquisition is strategically significant for Kraken, enabling it to diversify its product ecosystem by directly incorporating tokenized real-world assets. Backed Finance’s proven technology and regulatory compliance framework provide Kraken with immediate entry into the burgeoning sector of on-chain securities. Synergies are expected to arise from Kraken's extensive user base and robust infrastructure facilitating broader adoption for Backed's tokenized stocks and ETFs, while Backed's solutions enhance Kraken's vision of expanding access to a wider range of financial instruments within a blockchain environment.
This integration is anticipated to position the combined entity at the forefront of the evolving landscape where traditional finance converges with decentralized technology. By merging Kraken's established crypto platform with Backed Finance's expertise in tokenizing real-world assets, the acquisition aims to offer a more comprehensive and accessible suite of investment opportunities, further accelerating the adoption of blockchain-based finance globally.