The acquisition will give Kraken full control of the xStocks tokenized-equity platform, strengthening the exchange’s push into regulated real-world assets. US-based crypto exchange Kraken has agreed to acquire Backed Finance AG, the company behind the issuance of xStocks, adding to a string of acquisitions the exchange has made this year while bringing the tokenized-equities platform under its roof. According to Tuesday’s announcement, Kraken plans to integrate xStocks’ issuance, trading and settlement more tightly into its products, including its global money app, while expanding support to additional blockchains and markets. XStocks is a platform that issues tokenized versions of publicly traded equities, such as stocks and exchange-traded funds (ETFs). It currently offers over 60 tokenized products and has recorded more than $10 billion in combined exchange and onchain volume since launching earlier this year. Read more
Representative Stephen Lynch questioned Fed supervisor Michelle Bowman about her comments on digital assets at a November conference in Madrid. US Representative Stephen Lynch pressed Federal Reserve Vice Chair Michelle Bowman on Tuesday over her past remarks encouraging banks to “engage fully” with digital assets, questioning the Fed’s role in advancing crypto frameworks while showing confusion over the definition of stablecoins. In a Tuesday oversight hearing, Lynch asked Bowman, the Fed vice chair for supervision, about remarks she had made at the Santander International Banking Conference in November. According to the congressman, Bowman said she supported banks “[engaging] fully” with respect to digital assets. However, according to Bowman’s comments at the conference, she referred to “digital assets” rather than specifically cryptocurrencies. The questioning turned into Lynch asking Bowman about distinctions between digital assets and stablecoins. Read more