Key Takeaways
- Kraken exchange is in talks with a strategic investor for a major funding round.
- If the deal materializes, it would put the crypto exchange’s valuation at $20 billion.
- The firm recently closed a $500 million funding at $15 billion valuation.
Kraken, a popular crypto exchange, is eyeing a new funding round that may see its valuation rise to almost $20 billion, according to individuals with knowledge of the situation. Reports indicate the focus of the conversation is a possible $200-300 million investment by a strategic investor. The result will rely on the overall market conditions.
Such an investment would mark the second major financing for the company, according to a Bloomberg report. These talks come just a day after the San Francisco-based company finalized a $500 million round of financing that valued the company at $15 billion. The previous increase, which was made in September, enticed both venture capital firms and institutional investors.
One of the investors that participated in the round was Tribe Capital Venture. The insiders have pointed to Arjun Sethi, the co-chief executive and personal investor with the platform, as the key personality behind the recent growth of the exchange.
How Kraken Became a Global Player
Kraken was established in 2011 and initially it served professional and institutional traders without seeking the attention of the mainstream like other companies such as Coinbase. In its history of operations that spans over a decade it has only received small amounts of outside capital, approximately $27 million before the capital raises this year.
The new financing round of $500 million and the $300 million impending funding marks the inception of large-scale influx for the venture. It will mark a new stage in the evolution of this exchange as it is readying to finally venture into the market.
IPO Roadmap as Exchange Eyes 2026 Debut
The exchange has a stock market listing target date in 2026, compared to many other competitors that have already attempted to test the public market this year, including Circle, Gemini and Bullish. Proponents indicate that Kraken is in a good position financially that can see it withstand a changing investor mood. During the second quarter of 2025, the company recorded an income amounting to $411 million in revenue and almost $80 million earnings after making EBITDA adjustments.
Organizational Changes and Leadership
The management of Kraken was changed drastically last year, as it saw the entrance of Sethi, who became a co-CEO with Dave Ripley. Although the title is shared, insiders suggest decision-making has been concentrated in Sethi’s hands. Ex-employees remember Jesse Powell, Kraken’s founder, telling Sethi that he was the ultimate authority even in the presence of Ripley.
Under the leadership of Sethi, the firm has lost some of its top managers such as the chief technology officer, the chief operating officer, the head of legal and sales. Kraken has termed these exits as one of the restructuring aimed at accelerating execution and simplifying the operations. Although the reshuffle technically took a toll on employee morale, business executives report that interest has since rejuvenated, with the company not only focusing more on product development but also taking this as a priority.
Growth Via Tokenized Assets
Kraken keeps expanding its services past conventional crypto trading. In 2025, it introduced “xStocks,” equity derivatives of companies like Apple and Tesla, making new markets in areas where the traditional brokerage fee is still high. Those areas have been among the adopting ones, specifically South Africa. Sethi publicly called tokenized assets the next phase of finance and they could make global markets accessible.
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