Kraken Files for $20B IPO, Bets on Crypto's Mainstream Breakthrough

Kraken, one of the largest cryptocurrency exchanges in the U.S., has confidentially filed a draft registration statement with the Securities and Exchange Commission (SEC) for a potential initial public offering (IPO), marking a significant step toward entering public markets. The filing, made under Form S-1, sets the stage for the Wyoming-based exchange to list its common stock, though the SEC's review process-resumed after a 43-day government shutdown will determine the timeline. The move follows months of speculation and aligns with broader trends in the crypto industry, where firms like Gemini and Grayscale have recently pursued similar strategies.

The IPO announcement comes just days after Kraken secured $800 million in a funding round that values the company at $20 billion. The round included a $200 million strategic investment from Citadel Securities, alongside institutional backing from Jane Street and DRW Venture Capital. This follows a $500 million Series C funding round in September 2025 at a $15 billion valuation, led by investors such as Tribe Capital and Apollo. Co-CEO Arjun Sethi emphasized the company's deliberate approach, stating Kraken is "not racing to the door" despite market speculation.

Kraken's financial performance underscores its growth trajectory. In Q3 2025, the exchange reported adjusted EBITDA of $178.6 million, a 124% increase from the prior quarter, alongside a 27.6% margin. Platform transaction volumes surged 26% quarter-over-quarter to $576.8 billion, while assets under management hit $59.3 billion, up 34% year-on-year. The company also expanded its offerings through the acquisition of NinjaTrader, a retail futures trading platform, in May 2025.

The IPO filing positions Kraken among a growing cohort of crypto firms seeking public market access. Grayscale Investments filed its own Form S-1 on Thursday, while Gemini and Coinbase have already listed. Kraken's $20 billion valuation surpasses its peers, including Bullish ($5.2 billion market cap) and Gemini ($1.3 billion), reflecting investor confidence in its long-term strategy. Sethi attributed the valuation to "years of work, discipline, and conviction" , emphasizing the company's focus on sustained growth over short-term gains.

The SEC's review process will be critical, as regulatory scrutiny remains a key challenge for crypto firms. With the agency operating at full capacity again, the timeline for Kraken's IPO hinges on approval and market conditions. If successful, the offering could further normalize crypto assets in traditional finance, building on the momentum set by earlier listings like Circle's $1.1 billion IPO in 2025.