Kraken Is Targeting An IPO Next Year: Report

Kraken, one of the oldest and largest cryptocurrency exchanges in the United States, is orchestrating a large funding round before a potential initial public offering next year, according to a new report from Bloomberg.

Sources contacted by the outlet say the exchange likely aims to raise $100 million before the move.

Kraken To Go Public?

If Kraken were to follow through, it would become the second publicly traded pure-play crypto exchange in the world after Coinbase, its larger rival.

The supposed plans are a response to investor inquiries on the matter fueled by the crypto market rally in recent months, which has boosted trading volumes from which exchanges like Kraken generate profit.

Two of the people contacted said Kraken would raise the money in a “pre-IPO round” with the intention of completing it by the end of the year.

An IPO could be completed as soon as next year, the people said, after Kraken can find a “marquee” company to join its board. Only verbal discussions have occurred regarding terms and valuations without any formal documentation, one person said.

“We are always exploring strategic paths toward Kraken’s Mission: accelerating the global adoption of crypto,” said Kraken, declining to comment specifically on fundraising or IPO matters. “We remain fully focused on investing in this goal.”

Public stock and crypto trading platform Robinhood said on Thursday hat it would acquire crypto exchange Bitstamp. Earlier this year, stablecoin issuer Circle also announced plans to go public.

A Maturing Crypto Market

Kraken’s parent company, Payward, was founded in 2011. While the exchange has intended to go public for years, a mix of volatile crypto market downturns and regulatory issues have continued to thwart its efforts.

As of today, momentum is turning around on both fronts. Bitcoin is now experiencing a newfound wave of demand from Wall Street, with experts believing tens of billions of dollars are yet to enter the newly launched ETF products.

Meanwhile, policymakers are starting to open up to crypto, and are pushing forward legislation to create legal clarity for the industry. Last month, the House of Representatives passed comprehensive legislation to clarify which crypto assets are commodities vs securities, and how crypto exchanges can properly register with regulators.

Kraken has run into its share of trouble with the Securities and Exchange Commission(SEC) already, paying a $30 million fine last year for failing to register its staking as a service product. It now faces a lengthier lawsuit for allegedly listing dozens of unregistered securities on its platform, which it is fighting back against in court.

The post Kraken Is Targeting An IPO Next Year: Report appeared first on CryptoPotato.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

Latest posts

post-thumbnail
Tornado Cash Co-Founder Released From Prison, Plans to Focus on Appeal
The post Tornado Cash Co-Founder Released From Prison, Plans to Focus on Appeal appeared first on Co...
READ MORE
post-thumbnail
Coinbase Adds POPCAT, PENGU and MORPHO Tokens to Listing Roadmap
The post Coinbase Adds POPCAT, PENGU and MORPHO Tokens to Listing Roadmap appeared first on Coinpedi...
READ MORE
post-thumbnail
Franklin Templeton Updates Crypto ETF Filing, Eyes Future Token Additions with SEC Approval
The post Franklin Templeton Updates Crypto ETF Filing, Eyes Future Token Additions with SEC Approval...
READ MORE
post-thumbnail
Maryland Introduces ‘Strategic Bitcoin Reserve Act’ in Push for State Crypto Adoption
The post Maryland Introduces ‘Strategic Bitcoin Reserve Act’ in Push for State Crypto Adoption a...
READ MORE
default post thumbnail
Ethereum Is Consolidating After The Flush Last Weekend – The Calm Before A Big Move?
Ethereum experienced one of the most aggressive sell-offs in its history on Monday, plunging 25% in ...
READ MORE
default post thumbnail
Dogecoin Starts Out February with 23% Crash, What Does Historical Data Point To?
The Dogecoin price has started out this month with a crash, sparking a bearish sentiment among DOGE ...
READ MORE
Read more posts