Kraken to Acquire Tokenization Platform Backed Finance as Crypto Exchange Extends Buying Spree

Core Viewpoint - U.S. crypto exchange Kraken is acquiring Backed Finance AG to enhance its tokenization efforts, aiming to accelerate the global adoption of tokenized stocks and redefine asset ownership in the digital era [1][4]. Group 1: Acquisition Details - Kraken's acquisition of Backed Finance AG is part of its strategy to integrate services that bridge traditional equities with decentralized finance [1]. - The transaction is expected to strengthen Kraken's infrastructure for open and programmable capital markets, according to co-CEO Arjun Sethi [2]. - The financial details of the acquisition have not been disclosed [3]. Group 2: Strategic Goals - Kraken aims to unify issuance, trading, and settlement of tokenized assets under a single framework to ensure transparency and global accessibility [3]. - The company has made several acquisitions this year, including Breakout and NinjaTrader, as it prepares for a public offering [4]. - Sethi emphasized that the acquisition is about more than just providing exposure to U.S. equities; it is about redefining asset ownership in the digital age [4]. Group 3: Industry Context - Interest in tokenization among traditional finance firms has increased, with notable figures like BlackRock's Larry Fink advocating for its potential to transform capital markets [4]. - Franklin Templeton has been actively tokenizing assets across various blockchains for several years, indicating a growing trend in the industry [4].