Kraken Acquires Backed Finance to Boost RWA Strategy Ahead of 2026 IPO

Cryptocurrency exchange Kraken is acquiring Backed Finance, a company specializing in tokenized stocks (xStocks) and government bonds. Observers interpret this as preparation for a planned initial public offering (IPO).

Just two weeks ago, Kraken announced the completion of an $800 million funding round, valuing the cryptocurrency exchange at $20 billion. This gives the company a price tag ahead of its expected IPO in early 2026. Now, with the acquisition of Backed Finance, Kraken is positioning itself for the mega-trend of RWAs – tokenized versions of traditional asset classes like stocks and government bonds.

Capital and revenues in the RWA sector are rising rapidly – ​​Kraken is taking precautions

In a press release, Kraken highlights the success of Backed Finance with xStocks. The Swiss startup Backed Finance has been launching shares of companies like Tesla, Apple, and Nvidia as crypto tokens on the blockchain since this year, and according to Kraken, xStocks have already generated more than $10 billion in trading volume in the last six months.

Kraken had already integrated these xStocks into its platform and expects the acquisition of Backed Finance to accelerate the growth of its risk-weighted assets (RWAs). Kraken did not disclose the price of the Backed Finance deal. Forecasts predict that the RWA market will grow rapidly and reach several trillion US dollars in deposited capital within this decade.

Kraken expects a valuation of $20 billion at its IPO

Kraken is securing a foothold in the risk-weighted assets (RWA) sector with backed finance. Kraken’s quarterly figures , published at the end of October, show record revenues of $648 million, sales of $576 billion, and more than 5 million active customers.

With this package, Kraken is aiming for an IPO, but the corresponding application to the SEC has been marked “confidential.” For now, the $20 billion valuation for Kraken, which emerged from the most recent funding round, will have to serve as the company’s valuation.

Conclusion: Kraken expands through backed finance – investors are eagerly awaiting the results

Kraken isn’t the only cryptocurrency exchange placing great emphasis on its risk-weighted assets (RWA) and prominently promoting xStocks. It’s becoming clear that customers of major cryptocurrency exchanges expect to see tokenized stocks and government bonds alongside Bitcoin and other cryptocurrencies.

Will investors reward this expectation at Kraken’s IPO? Coinbase, a pioneer in the field, achieved a valuation of around $86 billion at its IPO in April 2021; today, its stock is trading about 30 percent lower. Kraken will be aware that timing and the initial offering price are sensitive issues and will therefore be hesitant to commit prematurely – we’ll keep you updated.

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(Featured image by RDNE Stock Project via Pexels)

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