Kraken courts a $200–$300M ally to sprint from its $15B raise to a $20B pre-IPO mark
Kraken, the Cheyenne, Wyoming-based cryptocurrency exchange, is reportedly preparing for a major growth leap, with plans to raise new funding that could value the company at approximately $20 billion, according to Bloomberg.
The round is expected to feature a strategic investment of $200 million to $300 million, although sources caution that the deal remains contingent upon market conditions.
IPO plans put Kraken closer to Coinbase and Circle
This potential raise follows a $500 million funding round earlier this year that valued Kraken at $15 billion, as per a Fortune report. The proceeds are expected to fuel Kraken’s expansion, particularly as it prepares for an initial public offering next year.
Notably, the exchange has also appointed Morgan Stanley and Goldman Sachs to guide its initial public offering, targeted for 2026, further positioning itself to compete with publicly listed peers like Coinbase and Circle.
Here’s how Kraken’s IPO stacks up against Coinbase and Circle:
The Three Biggest Cryto IPOs at a Glance
| Kraken (Projected IPO) | Coinbase (IPO 2021) | Circle (Public Listing 2025) | |
| Core Services | Crypto exchange, tokenized equities, staking | Crypto exchange, staking, institutional services | Stablecoin issuance (USDC), payments, trading |
| Revenue Pre-IPO | $800M–$1B (2025 est.) | $1.27B (2020) | $800M+ (2024) |
| IPO Valuation | $20B (projected) | $85B (at IPO, March 2021) | $9B+ (2025) |
| User Base / Customers | 12M+ registered users | 73M+ verified users (2021) | 15M+ corporate/retail users |
| Geographic Reach | 190+ countries | 100+ countries | 100+ countries |
| Key Differentiators | Tokenized equities, staking, institutional tools | Early U.S. market leader, IPO timing | Stablecoin and payments focus |
Kraken expands into regulated digital finance with tokenized stocks, stablecoins
Kraken has broadened its digital asset offerings with tokenized equity trading through xStocks, enabling users to buy, hold, and transfer shares of companies, including Apple and Tesla, on-chain. Since its June launch, trading volume has surpassed $4 billion, with early adoption in regions such as South Africa.
The exchange has also strengthened stablecoin services via its collaboration with Circle, offering improved liquidity, lower conversion fees, and access to EURC alongside USDC.
Combined, these initiatives place Kraken alongside Coinbase, which is pursuing SEC approval for on-chain stock trading, and mirror broader trends in tokenized equities adoption seen with platforms like Robinhood in Europe.
Recent financial disclosures highlight $412 million in second-quarter revenue and nearly $80 million in post-EBITDA earnings, signaling profitability as Kraken prepares for its planned IPO in 2026.
Founded in 2011, Kraken now serves over nine million traders globally across more than 200 assets and eight fiat currencies. CEO Sethi has stressed the company will pursue a public listing only when it benefits both users and shareholders.
