Crypto Reporter
Shalini Nagarajan
Crypto Reporter
Shalini Nagarajan
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Crypto exchange Kraken has raised $200m from Citadel Securities at a $20b valuation, deepening the Wall Street firm’s push into digital assets and bolstering the exchange ahead of a planned stock market listing.
A Kraken spokesperson confirmed the round to Fortune, calling it a strategic investment from the nearly 25-year-old market maker. This new cash comes only weeks after Kraken closed a separate $600m financing in September at a $15b valuation.
That earlier round drew a roster of Wall Street and Silicon Valley names, including Jane Street, DRW, HSG, Oppenheimer, Tribe Capital and the family office of Kraken co-CEO Arjun Sethi.
Sethi confirmed the funding round in an X post on Wednesday.
Kraken Confirmed Its Earlier $600M Raise, Lifting Total Recent Funding To $800M
Further, Kraken publicly confirmed the $600m raise for the first time, after Bloomberg reported in September that the exchange was eyeing a $20b valuation from a strategic backer.
Citadel Securities plans to work with Kraken on risk management and market structure analysis among other initiatives, according to a statement Fortune shared.
The deal marks a clear shift for Citadel. The Ken Griffin-founded firm had largely stayed away from making markets on crypto exchanges or investing directly in digital assets, citing regulatory uncertainty in the US.
After Donald Trump took office in January, the company began preparing to transact on platforms such as Coinbase, Binance and Crypto.com.
Kraken Builds Balance Sheet Ahead of IPO as Citadel Expands Digital Asset Footprint
Citadel’s latest moves go beyond Kraken. Earlier this month, Ripple said it raised $500m from Citadel, Fortress Investment Group and other investors, signalling broader interest from traditional finance in established crypto infrastructure.
For Kraken, the two recent rounds, totaling $800m, significantly strengthen its balance sheet before an initial public offering targeted for next year. The exchange plans to use the capital to expand into markets outside North America and to build new payments products.
The company has also been active on the acquisition front. Since January, Kraken has announced a string of deals, including its $1.5b purchase of futures trading platform NinjaTrader, reinforcing its push into derivatives and more sophisticated trading tools.
Citadel’s Move Reflects Wall Street’s View That Crypto Trading Infrastructure Is Here to Stay
Before these transactions, Kraken had raised only $27m in venture capital, relatively modest funding for one of the world’s largest crypto exchanges. The latest capital injections move it into a different league and align it more closely with mainstream financial institutions.
Kraken is now preparing for a public listing as early as 2026. Bloomberg reported that the company is working with Morgan Stanley and Goldman Sachs to lead the offering, positioning the Wyoming-based exchange as one of the next big crypto names to test public markets.
For the digital asset industry, Citadel Securities’ $200m bet on Kraken signals that major market makers see lasting demand for regulated trading venues, even after a brutal bear market and a series of high-profile failures.
The new valuation also shows that top-tier exchanges can still command double-digit billion price tags when they can demonstrate global scale and a clear path to profitability.
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