According to CNBC, Kraken confidentially filed for a U.S. IPO on Wednesday, according to a person familiar with the matter. The crypto exchange recently raised $800 million at a $20 billion valuation, with $200 million coming from Citadel Securities. Founded in 2011, Kraken facilitates trading of digital assets like bitcoin and ether and offers tokenized equities in the EU. The company plans to use the new funding to expand internationally and build payment services. This comes amid a resurgence in crypto-linked listings, with Bullish and Gemini Space Station going public in August and September, and Circle raising over $1 billion in its June IPO.
The Crypto Public Market Rush
Here’s the thing – we’re seeing a massive shift in how crypto companies approach capital markets. For years, these firms operated in the shadows, raising private rounds and staying away from public scrutiny. Now? They’re lining up for IPOs like it’s 2021 all over again. And honestly, it makes sense. With Trump back in the White House and regulatory uncertainty (somewhat) clearing up, public markets suddenly look a lot more attractive.
But let’s talk about timing. Kraken‘s confidential filing comes right after they secured that massive $800 million round. That’s not a coincidence – they’re basically showing potential investors they’ve got serious backing and momentum. Citadel Securities putting $200 million into the mix? That’s the kind of institutional validation that makes Wall Street pay attention.
What Kraken’s Actually Building
So what’s Kraken planning to do with all that cash? According to their recent announcement, they’re focusing on international expansion and payment services. That’s interesting because it shows they’re not just content being another crypto exchange. They’re looking at the bigger picture – becoming a full-service financial platform.
Tokenized equities in Europe is already a pretty sophisticated play. Most crypto exchanges stick to digital assets, but Kraken’s dipping into traditional finance territory. It makes you wonder – are we seeing the beginning of crypto platforms evolving into something closer to traditional brokerages? Probably. The lines are definitely blurring.
The Broader Crypto IPO Trend
Look at the pattern here. Circle in June, Bullish in August, Gemini in September, now Kraken. That’s four major crypto players going public in just a few months. This isn’t random – it’s a coordinated move by an industry that’s maturing fast. They’re not startups anymore; they’re established businesses seeking public market validation and liquidity.
The question is whether public markets are ready for this level of crypto exposure. Remember Coinbase’s volatile ride? These companies operate in an inherently volatile space. But maybe that’s exactly what makes them attractive to certain investors. High risk, potentially high reward – it’s the crypto story in a nutshell.
What Comes Next
I think we’re going to see more of this. A lot more. Crypto companies have been building in private markets for over a decade, and now they want public exits. The infrastructure is there, the investor appetite seems to be returning, and the regulatory environment is… well, let’s call it evolving.
The real test will be how these companies perform post-IPO. Can they maintain growth while dealing with quarterly earnings pressure? Can they navigate the additional scrutiny that comes with being public companies? That’s the billion-dollar question – or in Kraken’s case, the $20 billion question.
