Kraken Q2 2025 Adjusted Earnings Drop 7% Despite 18% Revenue Growth

Kraken, one of the leading cryptocurrency exchanges, reported a decline in adjusted earnings for the second quarter of 2025, despite a significant rise in revenue. The firm earned $411.6 million in revenue, marking an 18% increase compared to the same period in 2024. However, adjusted earnings fell by 7% to $79.7 million from $85.5 million in Q2 2024[1]. The exchange attributed the dip partly to macroeconomic pressures, including the impact of U.S. tariffs, and emphasized that it is operating in "Build mode," prioritizing long-term growth over short-term profitability[1].

Operational metrics, however, showed strong performance. Trading volume for the quarter surged 19% year-over-year to $186.8 billion, while platform assets rose 47% to $43.2 billion. The number of funded user accounts also increased by 37%, reaching 4.4 million. Kraken’s share of the stablecoin-to-fiat market expanded notably from 43% to 68%[1].

To support its growth strategy, Kraken is raising $500 million at a $15 billion valuation in preparation for a potential public listing in 2026. The company has also broadened its product offerings to include U.S. equities trading for most U.S. users, as well as 24/7 FX perpetual futures and a new initiative called xStocks, which features tokenized blue-chip equities and ETFs[1].

Kraken's expansion reflects a broader trend of convergence between traditional and digital finance. Other platforms, such as Bybit and Coinbase, are also exploring tokenized assets, while traditional brokers like eToro are entering the space with plans to tokenize major U.S. stocks and ETFs[1].

Meanwhile, Robinhood saw a significant boost in crypto revenue for Q2 2025, with a year-over-year increase of 98% to $160 million. The overall net revenue for the quarter reached $989 million, with net income more than doubling to $386 million. This strong performance came as crypto trading volumes increased by 32% to $28 billion[1].

Robinhood’s CEO, Vlad Tenev, emphasized the company's commitment to tokenizing real-world assets (RWA), calling it the most important innovation in the industry over the past decade. Robinhood aims to democratize access to assets such as private shares, venture capital funds, and real estate—sectors that are typically inaccessible to retail investors due to regulatory and liquidity constraints. This vision is a core part of Robinhood’s strategy following its $200 million acquisition of Bitstamp, which is expected to support the rollout of its tokenization platform[1].

Recently, Robinhood launched Robinhood Chain, a layer-2 blockchain focused on stock tokenization in Europe. The platform has already begun issuing equity-like tokens for private companies, including those resembling shares in OpenAI and SpaceX. The initiative has attracted significant interest from developers seeking to tokenize their assets and engage with the broader RWA movement[1].

However, the rapid expansion has also drawn regulatory attention. Authorities in Lithuania have reportedly launched an inquiry into some of the tokenized products, and OpenAI has publicly distanced itself from the tokens associated with its name. Despite these challenges, Tenev remains confident in Robinhood’s ability to lead the RWA space, citing the company’s 25 million U.S. users and $1 trillion in assets under custody as key advantages[1].

Tenev noted that while Ethereum currently dominates the RWA space with nearly $7 billion in tokenized assets, and ZKsync Era follows with $2.4 billion, Robinhood’s regulated infrastructure and large user base position it to outscale public blockchain platforms in the future[1].

---

[1] Kraken Reports Dip in Adjusted Earnings for Q2 2025

https://coinpaper.com/10269/kraken-reports-dip-in-adjusted-earnings-for-q2-2025