Kraken’s Acquisition of Backed Finance and 2026 Prediction Markets Plan: Analysis

On December 24, 2025, during a CNBC Crypto World segment [1], Kraken’s global head of consumer, Mark Greenberg, revealed two strategic initiatives: the acquisition of Backed Finance (the issuer of xStocks tokenized equities) and plans to launch prediction markets in 2026.

The Backed Finance acquisition strengthens Kraken’s existing tokenized equities offering. xStocks are 1:1 backed by actual stock held by regulated custodians, enabling 24/5 trading in eligible regions [2]. By acquiring the issuer, Kraken gains vertical control over the tokenization process, enhancing its product suite for retail and institutional users. This aligns with the broader trend of crypto exchanges bridging traditional and decentralized finance (DeFi) to offer comprehensive services [0].

Kraken’s 2026 prediction markets plan diversifies its offerings beyond crypto and tokenized equities. Prediction markets allow users to trade on event outcomes, positioning Kraken as a full-stack financial platform [1].

Regulatory tailwinds, including the U.S. GENIUS Act and EU MiCA framework, have reduced compliance risks, enabling exchanges like Kraken to expand into new product areas and drive institutional adoption [3]. This regulatory clarity has also fueled record crypto M&A activity ($8.6 billion in 2025), with Kraken leading strategic acquisitions to build integrated platforms [4].

1. Vertical Integration for Tokenized Equities Leadership
   : Acquiring Backed Finance gives Kraken end-to-end control over xStocks, a key differentiator in the growing tokenized equities space [0].
2. Prediction Markets Expand Addressable Market
   : Adding prediction markets taps into a new user base interested in event-driven trading, beyond traditional crypto and equities [1].
3. Regulatory Clarity Drives Innovation
   : U.S. and EU frameworks have created a stable environment for crypto exchanges to innovate and consolidate [3].
4. Industry Consolidation Accelerates
   : Kraken’s moves contribute to ongoing M&A trends, as exchanges compete by offering diverse financial services [4].

• Opportunities
  :
  • Kraken’s competitive position strengthens through deeper xStocks integration and new prediction markets, potentially attracting users and increasing revenue [3].
  • Users benefit from an integrated platform with expanded trading options (24/5 tokenized equities, prediction markets) [1].
  • The acquisition advances tokenized equities adoption, bridging traditional and crypto finance [0].

• Risks
  :
  • Undisclosed financial terms and integration timelines for the Backed Finance acquisition create uncertainty [0].
  • Prediction markets may face regulatory scrutiny in some regions, depending on structure [1].
  • M&A integration challenges could delay benefit realization [4].

• Kraken announced acquiring Backed Finance (xStocks issuer) and 2026 prediction markets on CNBC Crypto World [1].
• xStocks are 1:1 backed tokenized equities with 24/5 trading in eligible regions [2].
• 2025 crypto M&A reached $8.6 billion, led by Kraken and peers [4].
• Regulatory frameworks (U.S. GENIUS Act, EU MiCA) reduce compliance risks for exchanges [3].
• Information gaps include acquisition financials, prediction market details, and integration timelines.