The strategic partnership with Citadel will provide Kraken expertise in differentiated liquidity provision, risk management, and market structure insights.
Crypto News
The U.S.-based crypto exchange secured $800 million across two funding tranches on Tuesday, with the capital designated for global expansion initiatives. Citadel Securities contributed $200 million as part of the second tranche at the $20 billion valuation.
The strategic partnership with Citadel will provide Kraken expertise in differentiated liquidity provision, risk management, and market structure insights. The firm also participated in Ripple's $500 million raise earlier this month.
Jane Street, DRW Venture Capital, HSG and Tribe Capital backed the primary funding tranche. Kraken Co-CEO Arjun Sethi's family office made a significant commitment to the raise as well.
The exchange plans to deploy proceeds toward scaling global operations, deepening its regulated footprint and expanding its product suite through organic growth and targeted acquisitions. Kraken currently operates in multiple countries but is seeking expansion across Latin America, Asia Pacific, Europe, the Middle East and Africa.
Market speculation about a potential Kraken IPO has persisted for years. Co-founder and former CEO Jesse Powell stated in early 2021 that the exchange targeted an early-2022 listing, though competing exchange Coinbase went public over four years ago.
Sethi told Yahoo Finance on Friday that Kraken won't rush to go public despite improved U.S. regulatory conditions. The co-CEO emphasized the firm remains financially sound and well-capitalized through private funding, with the latest $800 million injection reinforcing that position.
The exchange continues to improve its services and offerings while maintaining its measured approach to public markets. Sethi's comments suggest Kraken prioritizes operational strength over rushing into an IPO despite favorable market conditions for cryptocurrency exchanges.
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