Kraken and Deutsche Borse strike partnership to link traditional and digital markets

Kraken and Deutsche Borse Group have entered a broad strategic partnership aimed at connecting traditional market infrastructure with crypto-native platforms, the companies announced Thursday.

According to a blog post, the agreement encompasses trading, custody, settlement, derivatives access, and tokenized assets, facilitating a massive cross-market integration between a global exchange operator and a major cryptocurrency platform.

Effective immediately, the two firms will begin coordinating on product development and infrastructure links designed to provide institutional clients with exposure across both ecosystems.

The partnership creates reciprocal market gateways. Kraken will offer its U.S. infrastructure — including institutional trading and custody — to Deutsche Börse clients seeking exposure to crypto and tokenized assets. In turn, Deutsche Börse will extend its European infrastructure to Kraken’s global institutional base.

Kraken co-CEO Arjun Sethi said the partnership “builds a holistic foundation for the next generation of financial innovation,” while Deutsche Borse Group CEO Stephan Leithner called it “a strategic fit” that combines regulated market infrastructure with digital-asset innovation.

FX integration via 360T

The first phase centers on foreign-exchange rails. Kraken will integrate directly with 360T, a Deutsche Borse subsidiary and one of the world’s largest FX trading venues.

Through the move, Kraken intends to offer access to bank-grade FX liquidity, improving fiat on- and off-ramp efficiency and bringing institutional-level execution to Kraken’s existing FX pathways.

The companies also plan to expand institutional offerings through Kraken Embed, Kraken’s white-label infrastructure product. This will allow banks, fintechs, and other financial intermediaries in the Deutsche Borse network to offer regulated crypto trading and custody services to their clients in Europe and the U.S.

Pending regulatory approvals, Kraken users will gain access to Eurex-listed derivatives, extending Europe’s largest regulated futures and options marketplace into the crypto exchange’s product stack.

The collaboration also enables Deutsche Borse clients to trade cryptocurrencies and derivatives through both Crypto Finance — its regulated digital asset subsidiary — and Kraken. Custody options will rely on Clearstream and Crypto Finance infrastructure, Thursday’s statement said.

Tokenization push

Kraken and Deutsche Borse will work to integrate xStocks, the tokenized equity format that Kraken acquired through its recently announced purchase of Backed Finance. xStocks will be embedded within Deutsche Borse 360X ecosystem to expand distribution across one of Europe’s largest tokenization platforms.

The firms also plan to allow distribution of Clearstream-custodied securities in tokenized form to Kraken’s client base, further tightening the link between tokenized and traditional market instruments.

Kraken has advanced a broader institutional strategy in 2025.

Earlier this week, the exchange announced plans to acquire Backed Finance, the issuer of tokenized assets behind the widely used xStocks standard. Kraken also confidentially filed for a U.S. IPO this fall after securing a valuation near $20 billion, and has expanded into consumer finance through Krak, a new debit-card and yield suite positioned as a bank alternative.

Founded in 2011, Kraken is one of the oldest and largest global crypto trading platforms. Deutsche Borse Group, headquartered in Frankfurt, is one of the world’s major exchange-infrastructure operators, overseeing Eurex, Clearstream, 360T, and multiple trading, clearing, and settlement systems across international markets.