Crypto-Focused Brokerage IPOs and Their Strategic Position in a Post-Crash Market

The crypto market's post-crash landscape in 2025 has revealed a fascinating duality: regulatory clarity and institutional adoption are converging to create valuation opportunities for crypto-focused brokerages. As the sector navigates the aftermath of a prolonged downturn, firms like Kraken, Gemini, and Figure Technologies are leveraging IPOs to reposition themselves as pillars of a maturing industry. This analysis explores how these companies are capitalizing on evolving regulatory frameworks, diversified revenue streams, and investor sentiment to justify their valuations in a market that once seemed uninvestable.

Regulatory Clarity: A Catalyst for IPO Viability

The U.S. regulatory environment has undergone a seismic shift since early 2024. Bipartisan legislative efforts, including the Financial Innovation & Technology (FIT) Act and the GENIUS Act, have clarified oversight boundaries between the SEC and CFTC, reducing legal uncertainties for crypto firms. This clarity has made traditional IPOs a viable path for crypto brokerages, a route previously deemed too risky. For instance, Gemini's IPO in 2025 saw its valuation surge to $4.4 billion, with shares rising 32.2% post-listing. Similarly, Figure Technologies' valuation ballooned to $7.6 billion following its IPO, reflecting renewed investor confidence.

The SEC's proposed "innovation exemption" further underscores this trend. By offering temporary regulatory relief for on-chain products, the exemption aims to balance innovation with investor protection according to regulatory analysis. This shift has not only lowered the barrier to entry for public markets but also attracted institutional capital, which now views crypto as a legitimate asset class.

Valuation Metrics: Resilience Amid a Post-Crash Market

Despite the crypto crash, key players have demonstrated financial resilience. Kraken, for example, is valued at $15 billion based on its last private funding round, a multiple of 10× 2024 revenue or 35× EBITDA. This premium to competitors like Coinbase is justified by Kraken's FY2024 performance: $1.5 billion in revenue and $424 million in adjusted EBITDA according to financial analysis. Its user base of 15 million and $43 billion in customer assets further solidify its market position according to market data.

Gemini and Figure Technologies also highlight the sector's valuation potential. Gemini's $2.22 billion fundraising goal was exceeded post-IPO, with its valuation doubling to $4.4 billion. Figure Technologies, meanwhile, secured a $4.13 billion valuation in its IPO, later surging to $7.6 billion. These figures suggest that investors are rewarding firms that navigate regulatory complexity while maintaining operational scalability.

Diversified Revenue Streams: Beyond Spot Trading

Crypto brokerages are no longer reliant on spot trading alone. Kraken's $1.5 billion acquisition of NinjaTrader and its expansion into derivatives, staking, tokenized equities, and payments illustrate a strategic pivot toward diversified revenue. Similarly, Coinbase has monetized its Layer-2 network (Base) and subscription services, while Circle has capitalized on interest income from stablecoin reserves according to financial reports.

This diversification is critical in a post-crash market. Over half of respondents in the 7th Annual Global Crypto Hedge Fund Report expressed interest in tokenized funds, signaling a shift toward operational efficiency and liquidity. . By broadening their offerings, crypto brokerages are insulating themselves from the volatility of pure-play crypto trading.

The Road Ahead: Challenges and Opportunities

While the current environment is favorable, challenges remain. Regulatory tailwinds could reverse if political dynamics shift, and macroeconomic headwinds-such as interest rate hikes-may pressure crypto valuations. However, the sector's ability to innovate and adapt offers a counterbalance. For instance, Kraken's regulatory settlements, like its $30 million SEC fine in 2023, have been offset by proactive compliance measures and expanded jurisdictional clarity.

Investors should also consider the long-term implications of institutional adoption. As traditional asset managers and hedge funds tokenize assets, crypto brokerages will serve as critical infrastructure. The rise of tokenized equities and real-world asset (RWA) platforms could further cement these firms' roles in the global financial ecosystem.

Conclusion: A Strategic Inflection Point

The post-crash market of 2025 has become a proving ground for crypto-focused brokerages. Regulatory clarity, diversified revenue models, and institutional adoption are creating a flywheel effect that justifies aggressive valuations. Firms like Kraken, Gemini, and Figure Technologies are not merely surviving the downturn-they are redefining the industry's trajectory. For investors, the key takeaway is clear: the crypto sector's next phase of growth will be driven by companies that balance innovation with compliance, turning volatility into opportunity.