A laptop displaying the Kraken logo was placed in Hastings-on-Hudson, New York, on Friday, February 10, 2023. The image was captured by photographer Tiffany Hagler-Geard for Bloomberg.
Cryptocurrency exchange Kraken is making preparations to go public, aiming for an initial public offering (IPO) in early 2026. The company is taking this step as the regulatory environment in the US becomes more favourable under President Donald Trump’s administration.
A Long-Awaited Move Towards Public Listing
Kraken, officially known as Payward Inc., has been considering an IPO for years. However, increased regulatory scrutiny under the Biden administration put those plans on hold. Now, sources familiar with the matter say the company is looking to launch its IPO as soon as the first quarter of next year. However, the final decision has yet to be made, and plans could still change.
A Shift in Regulatory Climate
Under President Trump, the US government has taken a more supportive stance toward cryptocurrency. Unlike his predecessor, Trump has actively engaged with crypto leaders, including Kraken’s Co-CEO Arjun Sethi. The President is set to meet with industry executives at the White House this Friday, signalling a more crypto-friendly approach.
Kraken has previously faced regulatory challenges. It settled one lawsuit with the US Securities and Exchange Commission (SEC) and fought another case until the agency dropped all charges. With fewer regulatory roadblocks, the company sees an opportunity to move forward with its IPO ambitions.
Kraken’s Financial Growth and Market Expansion
The company’s financial performance has strengthened in recent years. In 2024, Kraken reported revenue of $1.5 billion, more than doubling its previous earnings. Adjusted profits stood at $380 million. In comparison, Coinbase, the largest US-based crypto exchange, generated around $6.6 billion in revenue last year.
Kraken is currently the tenth-largest crypto exchange by trading volume, according to CoinMarketCap. To expand its market presence, it has recently introduced new services and entered additional international markets.
More Crypto Companies Eyeing Public Markets
Kraken is not alone in its IPO plans. Several other crypto firms are also preparing to go public, taking advantage of the improving market conditions. Among them are stablecoin issuer Circle, crypto custodian BitGo, and exchanges like Gemini and Bullish.
Despite its long history in the industry—Kraken was founded in 2011—the company has raised only $27 million in primary funding. Going public could provide the financial backing needed for future expansion and innovation.
Kraken emphasized its commitment to transparency in its response to Bloomberg News, stating, “We recently disclosed our 2024 financial highlights and will continue prioritizing transparency for our clients, partners, and shareholders. We will move towards public markets when the time is right.”
