Kraken just crushed expectations. The crypto exchange saw its 2025 revenue jump 33% to over $2.2 billion, setting the stage for what could be one of the biggest IPO launches in the crypto space this decade.
Trading made up 47% of that revenue haul, while asset-based operations and other services brought in the rest. Co-CEO Arjun Sethi called the split “well balanced” during recent investor discussions. The numbers back up Kraken’s push toward going public after confidentially filing with the SEC back in November. But the company won’t say much about timing or valuation targets. A recent funding round pegged Kraken’s worth at $20 billion, though that private market number might not reflect what public investors will pay.
The growth story runs deeper.
Adjusted EBITDA surged 26% to $530.6 million. Transaction volume hit $2 trillion – that’s a 34% jump from last year. Assets under management grew 11% to $48.2 billion. And funded accounts? They soared 50% to 5.7 million users. Those metrics paint a picture of an exchange that’s not just riding crypto’s latest wave but actually expanding its user base and keeping them active.
Kraken’s been busy buying up competitors and adjacent businesses. The exchange grabbed NinjaTrader, Breakout, Small Exchange, and Capitalise.ai over the past year. Each deal targets a different slice of the trading ecosystem. NinjaTrader brings futures trading capabilities. Small Exchange adds derivatives. Capitalise.ai offers AI-powered trading tools.
Sethi said the acquisition spree takes inspiration from Amazon and Alphabet’s playbook – build a unified system that can handle multiple services efficiently. “We’re not chasing trends,” he told investors. “We’re building infrastructure that can scale.”
But Kraken’s biggest bet might be tokenized stocks. The platform launched this service recently and already hit $5 billion in trading value. Over 37,000 users jumped in within weeks of launch. That’s pretty impressive for a brand new product category.
The tokenized stock play puts Kraken in direct competition with traditional brokers. Users can trade blockchain versions of Apple, Tesla, Amazon shares without dealing with traditional stock exchanges. It’s risky – regulators haven’t figured out how to handle these hybrid products yet. But early adoption numbers suggest there’s real demand. Related coverage: Revolut Hits 1 Million Australian Users,.
Kraken also made moves in Europe this year. The exchange bought a Cyprus-based broker to snag a MiFID II license. That regulatory approval lets Kraken offer crypto perpetual contracts to European users. Perpetuals are basically futures contracts that don’t expire – they’re huge in crypto trading but were mostly limited to Asian exchanges until now.
The European expansion matters because it diversifies Kraken’s revenue base. US crypto regulations remain murky, and having solid footing in Europe gives the company options if American regulators get aggressive.
Kraken raised $800 million in its latest funding round, money that’s going toward these expansion efforts and tech development. The company didn’t break down exactly how much each acquisition cost, but industry sources peg the total spending at several hundred million dollars.
The IPO filing remains confidential, so details about timing and share structure aren’t public yet. But Kraken’s pushing hard to get everything lined up. The exchange hired Goldman Sachs and Morgan Stanley as lead underwriters. Legal teams from multiple law firms are working on regulatory compliance issues.
Market conditions for crypto IPOs look better than they did two years ago. Bitcoin’s been relatively stable above $40,000. Institutional adoption continues growing. And public market investors seem more willing to bet on crypto infrastructure companies rather than just holding tokens directly.
Kraken faces competition from Coinbase, which went public in 2021 and has struggled with volatile earnings tied to crypto price swings. Kraken’s more diversified revenue model – with trading, staking, derivatives, and now tokenized stocks – might appeal to investors looking for steadier growth. This follows earlier reporting on Backpack Eyes IPO Path While Rolling.
The company’s international footprint also sets it apart. While Coinbase focuses heavily on the US market, Kraken operates in dozens of countries. That geographic spread could buffer against regulatory crackdowns in any single jurisdiction.
Sethi won’t give specifics about IPO timing, but industry watchers expect an announcement within six months. The exchange needs to file updated financials and complete regulatory reviews before going public. Given crypto’s volatility, Kraken probably wants to move fast while market conditions stay favorable.
The $20 billion private valuation puts Kraken among the most valuable crypto companies globally. Whether public investors will pay that much depends on growth prospects and market sentiment when the IPO actually launches.
Bitcoin’s rally past $100,000 in late 2024 created a perfect backdrop for Kraken’s revenue surge. The cryptocurrency’s price momentum drove trading volumes across all major exchanges, but Kraken captured more than its typical market share. Coinbase reported similar volume increases but saw revenue grow only 18% over the same period. Binance, still dealing with regulatory settlements, posted flat growth in several key markets. Industry data from CryptoCompare shows total crypto trading volume reached $15.8 trillion globally in 2025, with spot trading making up 62% of that activity.
Kraken’s tokenized stock offering arrived just as traditional finance started taking blockchain-based securities seriously. BlackRock launched its first tokenized bond fund in March 2025, while JPMorgan expanded its JPM Coin usage to retail-adjacent services. Franklin Templeton’s OnChain US Government Money Fund hit $1.2 billion in assets under management by year-end. Wall Street’s embrace of tokenization validates Kraken’s bet, though regulatory clarity remains patchy. The SEC hasn’t issued formal guidance on tokenized stocks, creating both opportunity and legal uncertainty. European regulators under MiCA framework offer clearer rules, explaining why Kraken prioritized its Cyprus licensing deal.
Post Views: 16
About the Author
