Kraken Eyeing $500 Million Funding Round Ahead of Potential Initial Public Offering

Kraken, a leading American cryptocurrency exchange, is reportedly planning a funding round of approximately $500 million at a valuation of $15 billion, positioning itself for a potential public debut later this decade.

According to The Information, the funding round is being considered by Kraken as it prepares for a potential initial public offering (IPO). The news source cited individuals familiar with the matter, noting the exchange had previously been valued at around $11 billion in 2022.

Bloomberg previously reported in March, citing information suggesting Kraken aimed for a public offering as early as the first quarter of 2026, speculating on a more favorable regulatory climate potentially emerging under the Trump administration.

Context: Capitalizing Amid Crypto Boom

This reported funding round could allow Kraken, a firm majority owned by China Investment Corporation (CIC), to capture significant value amidst a recent surge in successful initial public offerings (IPOs) within the financial and tech sectors.

The current crypto IPO wave has already yielded substantial returns for established platforms. eToro, which offers stock and cryptocurrency trading, saw its stock price increase over 16.5% since its May 2023 IPO. Similarly, USDC issuer Circle’s stock gained over 484% in its June debut and Coinbase stock surged 50% year-to-date.

Trading Volumes and Competition

According to CoinGecko data, Kraken reported daily trading volumes of approximately $1.37 billion and listed over 1,100 trading pairs as recently as late 2023 or early 2024. While large-cap traditional rivals like Coinbase ($2.77 billion daily volume) remain dominant, Kraken still holds a significant share of the market.

Fig.1: Trading Volume Comparison (US Exchanges)

Kraken’s funding plans are coupled with a regulatory environment becoming more accommodating to the industry. Earlier this year, the U.S. Securities and Exchange Commission dropped its long-running lawsuit against Kraken, joining a trend of regulatory action abandonment for major crypto firms, potentially facilitating its path toward an IPO.

Regulatory Support and Expansion

The retreat of SEC enforcement actions (notably on Kraken, Coinbase, Coinbase suspended, eToro, Gemini, etc.) is widely seen as a catalyst for increased potential entry points for crypto firms.

Kraken has also expanded its global footprint. The exchange secured licenses under the Markets in Crypto-Assets framework, enabling operations across the European Union, and launched a peer-to-peer fiat-crypto payments app called “Krak.”