Kraken Acquires Token Manager Magna as Exchange Gears Up for IPO

Kraken has acquired token management platform Magna, the crypto exchange announced Wednesday, adding another piece to its institutional infrastructure ahead of an anticipated public market debut.

The deal, executed through parent company Payward, closed last Friday. Terms were not disclosed. Magna was last valued at $70 million in its most recent funding round, according to PitchBook data cited by Fortune.

What Magna Does

Magna helps crypto projects manage the logistics of token distribution – vesting schedules, claims, escrow workflows, and custody operations across multiple chains. When startups raise from VCs and promise tokens in lieu of equity, tracking who owns what becomes increasingly complex once tokens go live.

The platform has become core infrastructure for teams managing billions in active token ecosystems, serving over 160 clients and reaching a peak Total Value Locked of $60 billion in 2025.

"Magna was built to make token operations safer, simpler, and more compliant at scale," Magna CEO Bruno Faviero, a graduate of Y Combinator's 2022 winter cohort, said in a statement. "Joining Kraken gives us the resources to support existing and new clients with institutional-grade infrastructure, deeper liquidity, and global distribution."

Why Kraken Wants It

Kraken co-CEO Arjun Sethi framed the acquisition as a way to engage token issuers earlier in their lifecycle.

"This would just add to being able to reach out and start supporting [token] issuers early on in their life cycle, rather than later at the time they're thinking about liquidity within their token," Sethi told Fortune.

Magna will continue operating as a standalone platform while integrating with Kraken's broader vision of becoming a "fully verticalized product suite" supporting fundraising, distribution, and lifecycle management.

The IPO Runway

The acquisition marks Kraken's sixth deal in 12 months as the exchange builds out its offerings ahead of going public. Previous acquisitions include:

• NinjaTrader — $1.5 billion (futures trading platform)
• Backed Finance — tokenized stocks and ETFs
• Small Exchange — derivatives infrastructure
• Breakout — proprietary trading firm

Kraken filed confidentially for an IPO in November 2025 and released select 2025 financials in February – mimicking the transparency expected of public companies. Sethi declined to offer a specific listing timeline, citing the regulatory quiet period.

Competing for Token Infrastructure

Kraken isn't alone in eyeing token management. Coinbase acquired Liquifi, a competing platform, in July 2025. Sethi told Fortune that Kraken didn't bid for Liquifi, emphasizing a focus on "market structure" and "lifecycle" over chasing headlines.

Both exchanges are racing to become "everything platforms"—expanding beyond spot trading into derivatives, tokenized stocks, and now the picks-and-shovels infrastructure that powers token ecosystems.

M&A Bonanza Continues

Crypto M&A hit $37 billion in 2025, according to data from Architect Partners, and 2026 is expected to break that record. Kraken has signaled it's not done shopping, though Sethi has previously said the company won't take a "spray and pray" approach.

"The goal is simple," Sethi said. "Help projects move from idea to execution with clarity and measurable outcomes, without locking them into one stack."