Kraken partners with Avelacom to provide institutions faster, low-latency access to its trading systems, supporting real-time data and high-speed strategies. The deal strengthens Kraken’s institutional infrastructure and follows its collaboration with Deutsche Börse Group to unify crypto, FX, and derivatives markets. Kraken is also acquiring Backed Finance to integrate tokenised securities ahead of its planned 2026 public listing.
Kraken forms a new partnership with Avelacom to provide institutional traders with faster connectivity to its exchange infrastructure. The initiative is part of Kraken’s wider programme to build an institutional-grade trading environment across digital and traditional asset markets.
Strengthening connectivity for institutional clients
Kraken announces a direct integration between its matching engine and Avelacom’s global low-latency network. The connection enables institutional clients to receive market data and execute trades with minimal delay, supporting strategies that rely on speed and precision such as cross-exchange arbitrage and liquidity aggregation.
According to Kraken, clients using the new setup gain real-time price updates with high execution consistency. The exchange positions this as a response to the growing demand for robust trading performance among professional firms operating across multiple liquidity venues.
Avelacom’s network links major financial hubs worldwide, including London and Tokyo. Its fibre route between the two centres records sub-138 millisecond round-trip latency, with hybrid solutions reducing the transmission time even further. The partnership adds another layer to Kraken’s institutional infrastructure, giving firms access to enhanced connectivity through Kraken’s institutional division.
Building a unified framework for digital and traditional markets
The Avelacom deal follows Kraken’s recent collaboration with Deutsche Börse Group, which aims to offer institutional investors a central access point to crypto, foreign exchange, and derivatives markets. The integration connects Deutsche Börse’s established exchange infrastructure with Kraken’s digital asset platform.
The initiative seeks to streamline processes across trading, settlement, custody, collateral management, and tokenised assets. Both organisations describe the objective as delivering frictionless access across asset classes through a unified system.
Kraken Co-CEO Arjun Sethi states: “Our partnership with Deutsche Börse Group demonstrates what happens when two infrastructures designed for scale and trust intersect.”
The collaboration reflects the increasing interest among institutions in managing both traditional and digital assets through consolidated platforms.
Expanding tokenisation capabilities ahead of public listing
Kraken is also advancing its tokenisation plans through the acquisition of Backed Finance, a provider of blockchain-based tokens that represent real-world securities such as equities and exchange-traded funds. The transaction brings token issuance closer to Kraken’s core trading operations and supports preparation for Kraken’s planned public listing in 2026.
By integrating Backed Finance’s capabilities, Kraken aims to align the issuance and trading of tokenised products within a single environment, enabling institutions to operate across digital and traditional assets with consistent infrastructure.
Positioning for the next phase of institutional crypto trading
Kraken’s latest agreements with Avelacom and Deutsche Börse Group demonstrate an ongoing effort to strengthen institutional access to digital assets. The combined initiatives target faster execution, unified market access, and the integration of tokenised securities, areas that are becoming increasingly important as professional participation in crypto markets continues to rise.
Through these developments, Kraken aims to act as a bridge between established financial systems and emerging digital asset markets, supporting institutions that require performance, scale, and operational consistency across trading venues.
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