Kraken, one of the world's largest cryptocurrency exchanges, has secured a $200 million strategic investment from Citadel Securities, a top Wall Street market maker, valuing the company at $20 billion. This marks another significant signal of traditional finance giants accelerating their embrace of digital assets.
The funding was confirmed by Kraken’s spokesperson, coming just months after the exchange raised $600 million in September last year at a $15 billion valuation. Investors in the previous round included Jane Street, DRW, Sequoia China, Oppenheimer, Tribe Capital, and the family office of Kraken’s co-CEO Arjun Sethi.
With these two rounds totaling $800 million, Kraken is strengthening its capital base ahead of a planned IPO next year. Prior to these investments, the exchange had only raised $27 million in venture funding.
Citadel Securities’ investment represents one of the clearest signals yet of its shift toward digital assets. Historically, the firm, founded by Ken Griffin, avoided market-making or investing in crypto exchanges due to regulatory uncertainties in the U.S. However, earlier this year, reports indicated that Citadel Securities had begun trading plans on platforms like Coinbase, Binance, and Crypto.com.
Jim Esposito, President of Citadel Securities, stated, “We are excited to support Kraken’s continued growth and help shape the next chapter of digital innovation in markets.” The market maker will collaborate with Kraken in areas such as risk management and market structure analysis.
Kraken, which primarily serves institutional traders, has built a solid business foundation despite being less prominent in the U.S. market compared to competitors like Coinbase. In October last year, the exchange reported that its Q3 revenue more than doubled year-over-year to $648 million.
Since January, Kraken has also pursued high-profile acquisitions, including the $1.5 billion purchase of futures trading platform NinjaTrader. When asked about IPO plans in November, co-CEO Sethi remarked, “As a private company, we have ample capital on our balance sheet today, and we don’t want to rush into an IPO.”
Earlier reports in September 2022 suggested Kraken was considering a new funding round at a $20 billion valuation. The latest investment confirms this trajectory.
The exchange plans to use the fresh capital to expand beyond North America and develop new payment products.
Market risks remain, and investors should exercise caution. This article does not constitute personal investment advice.
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