Kraken’s Strategic Acquisition of Backed Finance: A Major Leap in Tokenized Stock Expansion

In a significant move that underscores the accelerating convergence of traditional finance and digital assets, leading cryptocurrency exchange Kraken has announced its agreement to acquire Backed Finance, the issuer behind the innovative xStocks tokenized equities platform. This strategic acquisition, finalized in late 2025, represents a pivotal step in Kraken's ambitious push into the realm of real-world asset (RWA) tokenization. The deal will see Backed Finance's specialized team and robust technological infrastructure fully integrated into Kraken's expansive ecosystem. The primary objective is to create a seamless, unified platform that consolidates the entire lifecycle of tokenized stocks—from issuance and primary distribution to secondary trading and final settlement—under one roof. This vertical integration promises to enhance efficiency, reduce friction, and improve accessibility for investors globally. The target of this acquisition, Backed Finance's xStocks platform, has already demonstrated remarkable traction since its debut earlier in 2025, reportedly surpassing a staggering $10 billion in transaction volume or assets under management. This impressive milestone highlights the growing institutional and retail demand for tokenized representations of traditional equities, which offer benefits like fractional ownership, 24/7 trading, and streamlined settlement processes compared to conventional markets. For Kraken, this acquisition is not merely an expansion of its service portfolio but a foundational play to position itself at the forefront of the tokenized securities market. By bringing Backed's expertise in-house, Kraken gains critical regulatory experience and technical capabilities for issuing compliant financial instruments on the blockchain. This move signals a broader industry trend where major crypto-native platforms are aggressively expanding beyond pure cryptocurrencies into tokenized versions of stocks, bonds, and other real-world assets. It reflects a bullish vision for a future where blockchain technology underpins a significant portion of global capital markets. For investors, Kraken's enhanced platform could soon offer a more streamlined gateway to diversify portfolios with tokenized stocks alongside cryptocurrencies, all within a familiar trading environment. The consolidation is expected to drive further innovation, liquidity, and legitimacy in the RWA sector, potentially attracting a new wave of traditional finance participants into the digital asset space. As of December 2025, this acquisition stands as a landmark event, setting the stage for the next phase of growth in the tokenization revolution.

Kraken Acquires Backed Finance to Accelerate Tokenized Stock Expansion

Kraken has agreed to acquire Backed Finance, the issuer behind xStocks tokenized equities, as the cryptocurrency exchange deepens its push into real-world asset tokenization. The acquisition will integrate Backed's team and infrastructure into Kraken's ecosystem, consolidating issuance, trading, and settlement of tokenized stocks under one platform.

xStocks, which debuted in 2025, has already surpassed $10 billion in combined exchange and on-chain trading volume. "This is bigger than giving people exposure to U.S. equities," said Arjun Sethi, Kraken co-CEO. "It's about redefining what it means to own assets in the digital era."

Backed Finance, founded in 2021, specializes in regulated blockchain-based tokens representing traditional securities. The deal positions Kraken to expand globally as financial institutions increasingly explore blockchain settlement infrastructure. xStocks currently offers over 60 tokenized equities and ETFs, with plans to integrate additional blockchains like TON, Tron, Mantle, and BNB Chain.

PEPE Faces Persistent Downtrend Amid Weak Rebound Strength

PEPE remains entrenched in a pronounced downtrend, consistently forming lower highs and lower lows since late September. The token's inability to break key resistance levels underscores sustained selling pressure, with market structure favoring bears.

Short-term pullbacks appear corrective rather than trend-reversing, as evidenced by weak upside momentum. Kraken's 2-day chart analysis via TradingView confirms bearish dominance, with price action firmly below the Ichimoku Cloud—a technical indicator signaling continued downward trajectory.

Despite the bleak near-term outlook, ambitious long-term targets of $0.000043 (10x) and $0.000065 (15x) persist. The October breakdown proved pivotal, dragging PEPE/USD DEEP into its former consolidation range where it continues to struggle for footing.