Kraken is moving toward an IPO. Parent company Payward said it confidentially filed a draft S-1 with the U.S. Securities and Exchange Commission, signaling the crypto exchanges plan to go public after securing $800 million in new funding and a $20 billion valuation.
What happened
In a Nov. 19 press release, Wyoming-based Payward said the size and timing of the deal will depend on the SECs review and market conditions. A confidential S-1 lets companies begin the process out of the spotlight and update their paperwork before a public reveal.
Whos backing the raise
Kraken disclosed two funding tranches. The larger round drew support from trading firms Jane Street, DRW Venture Capital, HSG, and others, plus a significant commitment from Kraken Co-CEO Arjun Sethis family office. A separate $200 million investment from Citadel Securities set a $20 billion valuation, according to Krakens funding update.
By the numbers
- 2024 revenue: $1.5 billion (company-reported)
- 2025 revenue: already above 2024s total in the first nine months (company-reported)
- Fresh capital: $800 million across two tranches
- Valuation: $20 billion set with the Citadel Securities investment
- Market position: second-largest U.S. centralized exchange by activity
- 24-hour trading volume: $1.4 billion, per CoinGecko
Why it matters
A Kraken IPO would be one of the biggest public market tests for a crypto-native business since Coinbase listed in 2021. Going public can open the door to larger pools of capital, give early investors liquidity, and subject the company to quarterly reporting that many mainstream investors prefer.
The investor mix is also notable. Market makers and trading firms like Citadel Securities, Jane Street, and DRW know exchange economics well. Their participation suggests confidence in Krakens volumes, fee model, and expansion plans.
How Kraken plans to use the money
Kraken says it will scale globally and broaden its product line, both organically and through acquisitions. In plain terms: expect more markets, more assets, and potentially new features like advanced trading tools or custody services, aimed at both retail users and big investors.
Context: the road to a listing
Filing confidentially doesnt guarantee an IPO. Companies often wait for calmer markets or clearer regulatory signals before launching a roadshow. For crypto exchanges, the bar can be higher due to fast-changing rules in the U.S. and abroad.
Still, Krakens reported profitability and steady revenue growth give it a story public investors understand: consistent fees from trading and other services, plus upside from market cycles.
What to watch next
- Timing: When the S-1 becomes public and when Kraken sets a price range.
- Use of proceeds: Whether the company targets acquisitions to speed expansion.
- Regulatory landscape: Any guidance from the SEC that could affect exchange businesses.
- Peer performance: How Coinbases stock and crypto market volumes trend into the offering window.
The bottom line
Krakens confidential S-1 and $800 million raise put a $20 billion marker on one of cryptos largest exchanges. If market conditions hold, the company could give public investors another pure-play bet on digital asset infrastructure.