• Kraken secures a $15 billion valuation with fresh funding ahead of its IPO.
• Co-CEO Arjun Sethi steers the exchange with an unconventional leadership style.
• Expansion into tokenized assets and acquisitions set the stage for growth.

Kraken, one of the longest-running crypto exchanges, has closed a funding round valuing the company at $15 billion, setting the stage for a highly anticipated public debut in 2026.

According to recent report, the firm raised $500 million in its latest round, with investors including Tribe Capital and several asset managers. Unlike many crypto startups, Kraken has been largely self-sufficient, raising just $27 million before this year.

The funding signals investor confidence in Kraken’s revenue growth, which reached $411 million in the second quarter of 2025, with nearly $80 million in post-Ebitda earnings.

For comparison, rival Coinbase commands a larger market presence, but Kraken’s focus on institutional and professional traders has helped it carve out a resilient niche. With this backing, Kraken is preparing to test whether it can justify its valuation when the IPO window opens.

Sethi’s Vision for a Hybrid Market

Co-CEO Arjun Sethi, formerly a venture capitalist as well as cofounder of Tribe Capital, leads Kraken’s charge towards the future of finance today. Known for a data-driven approach, Sethi considers Kraken an intersection of crypto and conventional finance.

Earlier this year, the business acquired NinjaTrader for $1.5 billion, adding another 2 million customers while bridging the space between professional traders and decentralised assets.

One of Kraken’s flagship products is xStocks, tokenized large-cap stocks like Apple and Tesla that may be traded on blockchains. Initial traction has come from nations like South Africa, where commission from conventional brokerage is more than 10%.

By offering decentralised access, Kraken will appeal to new retail users while strengthening its institutional bases. The move places it alongside firms like Robinhood and BlackRock that are also investigating tokenized marketplaces.

Kraken Faces Leadership Challenges

Although booming, Kraken itself has problems of its own. The company has seen high-level exits following the departure of then-CEO Jesse Powell in 2022. Sethi is also regarded as the sole decision-maker despite a co-CEO structure with Dave Ripley, and he’s made wholesale organizational changes.

Some observers think his leadership style is that of a venture company instead of a conventional exchange, but view it as preparation for a potential public offering.

Delaying its IPO until 2026 adds stress. Recent stock exchange listings by Circle, Gemini, and Bullish open up opportunities while posing a threatening risk. A decline before Kraken’s initial public offering may lower investor demand.

But its diversified income streams and established brand could help dampen the shock. Investors are wagering at present that Sethi’s plan will bring not only an IPO but a platform that is primed to recast the way assets will be traded around the world.

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