As reported by Bloomberg, Kraken’s fundraising effort is aligned with the resurgence of the digital asset market. The exchange has been contemplating an IPO since at least 2021, reflecting its long-term growth strategy.
Navigating Regulatory Hurdles
Kraken’s path to an IPO has been fraught with regulatory challenges.
In 2023, the US Securities and Exchange Commission (SEC) accused Kraken of operating an unregistered platform and improperly mixing customer funds. The company settled by paying a $30 million fine and halting its staking services in the US.
Recently, Kraken faced additional SEC accusations, similar to those against Coinbase, another major US crypto exchange.
Despite these issues, Kraken is committed to its mission of accelerating global crypto adoption.
A company spokeswoman noted, "We are always exploring strategic paths towards Kraken’s mission: accelerating the global adoption of crypto. We remain fully focused on investing in this goal."
Strategic Partnerships and Market Impact
To prepare for the IPO, Kraken is seeking a marquee company to join its board, aiming to boost investor confidence. Market observers suggest that Kraken’s IPO could signal a positive shift in the regulatory environment for digital assets.
Leigh Drogen, general partner at Starkiller Cap, remarked, "If VCs are gonna fund Kraken here assuming an IPO, they must be assuming a complete 180 in crypto regulatory issues given the Coinbase lawsuit."
