Kraken co-CEO Arjun Sethi confirmed Tuesday at the Semafor World Economy conference in Washington, D.C., that the exchange has confidentially filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC). The disclosure marks a renewed step toward public markets after earlier plans were paused amid volatile crypto conditions, including weaker trading volumes and falling crypto prices.
According to Semafor, the San Francisco-based exchange was valued at $13.3 billion in an April funding round, down from a $20 billion peak in late 2025. The round included backing from major investors such as Citadel Securities, reflecting shifting sentiment across digital asset markets. Sethi said Kraken aims to bring institutional-grade trading tools to retail users, comparing the platform's ambitions to services offered by firms like Jane Street and JPMorgan Chase, emphasizing broader access to sophisticated financial products.
Kraken's Confidential IPO Filing and Valuation Decline to $13.3B
In addition to the IPO news, Kraken recently secured a master account with the Federal Reserve Bank of Kansas City, granting access to U.S. payment infrastructure, including Fedwire. The move allows direct dollar settlement without intermediary banks, a significant milestone for a crypto-native firm. However, the account does not provide interest on reserves or access to Federal Reserve lending facilities.
Earlier reports indicated Kraken had paused IPO plans due to weaker trading volumes and falling crypto prices, though the company has not ruled out a future listing. Market conditions have weighed on recent crypto public offerings, including performance declines among newly listed firms.
Deutsche Börse's $200M Investment and Insider Security Incidents
Earlier the same day, Deutsche Börse disclosed an investment of $200 million in Kraken, acquiring a 1.5% fully diluted stake in Payward Inc via secondary share purchase, pending regulatory approval and expected to close in Q2 2026. The deal deepens an existing partnership announced in December 2025, aimed at integrating traditional financial infrastructure with digital asset markets, including regulated crypto trading, derivatives, tokenized assets, and institutional liquidity services.
Separately, Kraken disclosed two insider-related security incidents involving support staff who accessed limited client data through internal tools. About 2,000 accounts (0.02%) were affected, though no trading systems or client funds were compromised. The incidents led to an extortion attempt by a criminal group claiming to possess internal videos, which Kraken refused to pay. The company revoked access, identified responsible individuals, notified users, and is cooperating with law enforcement while strengthening controls. The episodes highlight ongoing insider threat risks across crypto firms. Galaxy Digital also reported a separate cybersecurity incident involving unauthorized access to a development environment, though no client data or funds were impacted.