Kraken Moves Deeper Into Tokenized Equities With Backed Finance Acquisition

Kraken is making a major push into the tokenization market with its agreement to acquire Backed Finance, the company behind the xStocks product line.

This move gives Kraken full control over a growing category of tokenized equities and positions the exchange for rapid expansion as it prepares for a public listing.

 

A Strategic Acquisition With Clear Intent

Backed Finance specializes in issuing tokens tied to real world assets, mainly public company stocks and ETFs. These assets are backed by real shares held in custody, allowing users to hold digital representations of traditional securities inside a blockchain environment.

By bringing Backed Finance in house, Kraken gains control over the entire tokenization stack. Issuance, collateral, custody, compliance, and product architecture will all operate under one roof. This eliminates reliance on an external provider and strengthens Kraken’s ability to innovate and scale. The exchange has been building aggressively in Europe and other global markets, and the acquisition aligns with its larger ambition to make tokenized securities a core part of its ecosystem.

 

Why Kraken Is Doubling Down on Tokenization

Tokenized assets have gained momentum as traders and institutions look for a more flexible way to access traditional financial instruments. The benefit is simple. Stocks can be traded on chain, around the clock, with global reach and fewer barriers.

Kraken’s recent capital raise brought its valuation to roughly twenty billion dollars. The company has been preparing for a public offering targeted for 2026, and expanding into real world asset tokenization helps diversify its revenue streams before going public. Backed Finance already holds meaningful market share in the tokenized equity space, which gives Kraken a strong foundation to build on.

The acquisition formalizes a partnership Kraken has spent the past year expanding. Backed has powered xStocks since launch, supporting products that have now generated more than $5 billion in cumulative trading volume on Kraken. 

 

The Broader Market Context

Interest in real world asset tokenization has surged through 2025, but the sector still faces challenges. Liquidity varies widely across tokenized securities. Some assets trade actively, while others see thin volume. This raises questions about whether tokenization alone can deliver deeper markets.

Regulatory frameworks are also evolving. Tokenized shares do not always offer the same rights as traditional equities, such as voting or regular dividend distribution. As more platforms introduce tokenized stocks, market fragmentation becomes a risk, since liquidity can spread across multiple chains and issuers.

These challenges do not diminish the potential, but they highlight the need for stronger standards, clearer rules, and well capitalized issuers.

 

What This Means for the Future

Kraken’s acquisition signals that tokenized equities are becoming a long term strategic priority rather than a side experiment. If successful, Kraken could set the standard for a hybrid financial model where traditional assets move seamlessly across blockchain infrastructure.

BlackRock executives Larry Fink and Rob Goldstein recently said tokenization could reshape financial markets as profoundly as the early internet reshaped information.

Kraken's users may gain access to more global equities, greater flexibility, fractional ownership, and always available markets. Institutions may find a more programmable way to issue and settle securities. The industry may see a blueprint for bridging regulated markets with decentralized technology.

 

The path will not be simple. Liquidity, compliance, and investor protections will remain central areas of focus. However, Kraken’s move shows that major players believe the future of equities includes both traditional exchanges and blockchain based markets working together.

 

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Kraken’s Ethereum Layer-2 project, Ink, is making a bold move by integrating a white-label version of Aave V3 and launching its own native token INK. This signals that Ink doesn’t just want to be another L2—it wants to host deep DeFi activity and become a destination chain.

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Ink’s Launch & Purpose

Ink is built on the OP Stack and part of the Optimism Superchain, meaning it leverages Ethereum’s security while enabling faster, cheaper transactions. Kraken fast-tracked its mainnet launch ahead of schedule to meet builder demand.

As a project incubated by Kraken, Ink’s goal is to bridge users from centralized exchange experience into DeFi in a more seamless way, by reducing friction, providing composability, and offering full DeFi tooling from day one.

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White-Label Aave V3: Ink’s DeFi Backbone

A huge development: the Aave DAO overwhelmingly approved a proposal (~99.8% support) to let Ink Foundation deploy a white-label version of Aave V3 using its codebase.

This means that on Ink, users will have access to lending and borrowing through a version of Aave's infrastructure—but under a new brand controlled by the Ink team. In return, Aave DAO will receive protocol revenue (at minimum a 5% equivalent on borrow volume) and support the new deployment for six months to ensure its stability.

Ink commits to attracting significant liquidity, setting aside funds to incentivize users and bootstrap usage—with a goal of over $250 million in initial liquidity. As part of the deal, Ink’s team is restricted from working with competing protocols for 12 months.

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INK Token: Fueling DeFi, Not Governance

Ink is introducing INK, a native token designed with a clear purpose: liquidity, incentives, participation—not governance. The supply is capped at 1 billion tokens, and INK will not be used to govern the Layer-2 protocol itself.

Its first utility: fueling a liquidity protocol built with Aave’s tech. Early participants and liquidity providers will receive INK via airdrops, helping jumpstart usage.

Unlike many token launches that hinge on governance drama or speculative hype, Ink is positioning its token as a utilitarian tool for onchain activity.

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Momentum & Metrics

In anticipation of the token launch, Ink has already seen a surge in on-chain usage: transaction counts have climbed, and more smart contracts are being deployed. Yet, its total value locked (TVL) is still modest—below $10 million.

Ink’s strategy leans heavily on pairing token mechanics with real utility, hoping to break from the cycle where tokens launch before the underlying product is viable.

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Why This Matters

• DeFi under a new model — This deployment blends centralized oversight (management by Ink Foundation) with protocol behavior (Aave’s core code) in a regulated, controlled environment.

• Scalable DeFi for Kraken users — Users already on Kraken get exposure to full DeFi features with less friction.

• Competition with Base & others — Ink now competes with L2s like Coinbase’s Base, but with a token model anchored in utility, not speculation.

• Alignment with Superchain vision — As part of the Optimism Superchain, Ink supports interchain composability and shared tooling across Ethereum L2s.

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Bottom line: Ink is charting an ambitious course—hosting its own token and deploying a rebranded Aave as its DeFi engine. If successful, it could become a powerful node in Ethereum’s scaling landscape, combining exchange reach with deep onchain functionality.