Kraken Secures $200 Million Funding From Citadel to Accelerate IPO Plans

• Kraken secures $200M from Citadel, boosting its valuation to $20B and accelerating IPO plans.
• Total recent funding now reaches $800M, solidifying Kraken’s financial position ahead of its expected 2026 listing.
• Citadel will support Kraken with risk management and market operations, signaling stronger Wall Street involvement in crypto.

Cryptocurrency exchange Kraken has received $200 million in new investments from financial firm Citadel Securities, valuing the cryptocurrency exchange at $20 billion. This is a significant move towards its potential listing on the stock market in the coming years.

Kraken’s spokesperson has confirmed the deal to Fortune, describing CIT’s contribution as a ‘strategic investment by one of Wall Street’s most powerful market makers.’ It’s worth noting that the capital infusion comes barely weeks after Kraken closed a separate round of 600 million in September at a valuation of 15 billion.

It had previously raised money from an impressive lineup of well-known financial institutions, such as Jane Street, DRW, HSG, Oppenheimer, Tribe Capital, and the family office of Kraken co-CEO Arjun Sethi, which was later confirmed in a post on X.

Kraken Confirms Total New Funding of $800 Million

For the first time, the exchange has admitted to the $600 million September round, having previously indicated its efforts to find a valuation close to $20 billion from a substantial investing partner. Now, with their deal with Citadel, Kraken has received $800 million in investments in these few months.

Citadel Securities, which shared its response to Fortune’s request for comment, will collaborate with the exchange on risk management, market studies, and other operational initiatives.

It is to be noted that Citadel had remained on the sidelines in the crypto market to avoid US regulations. But, after President Donald Trump’s ousting, there have been preparations for engagement with major exchanges such as Coinbase, Binance, or Crypto.com.

Ripple Gains $500M, Kraken Expands

It’s not just Kraken that’s caught the attention of CIT, however. Just earlier this month, Ripple claimed to have secured $500 million from investments by CIT, Fortress Investment Group, and other major players in finance, indicating their faith in the long-term viability of existing players in cryptocurrency markets.

For Kraken, these twin fundraising efforts mean that the exchange now has a solid financial foundation in place before its initial public offering, which is slated for next year. The firm also claims that these investments will enable it to enter new markets while developing its payment products.

The cryptocurrency exchange has also been expanding its presence through acquisition. It has made several acquisitions, including a purchase of NinjaTrader valued at $1.5 billion, since January.

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Kraken advances toward 2026 IPO with backing

Until these most recent transactions, Kraken had only sourced $27 million in venture capital, which is small in comparison to other international exchanges. These new investments represent a drastic turnaround for Kraken, aligning it with mainstream financial institutions. It now appears to be on solid ground for its proposed 2026 listing on the stock market.

According to a report from Bloomberg, the exchange is already partnered with Morgan Stanley and Goldman Sachs to lead its IPO, which will most likely be one of the next big players in the cryptocurrency market to hit the markets.

For the crypto market, specifically, the message from Citadel’s $200 billion investment is that major players on Wall Street fully expect regulated cryptocurrency exchanges to have an ongoing role in the market, in spite of difficult market conditions and high-profile failures.

But at the same time, valuations such as $20 billion make it clear that exchanges with solid business models, no matter their global presence, maintain value, particularly in demonstrating scalable growth.

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