Author:yyctrader
Compiled by: Deep Tide TechFlow
Deep Tide Insight:Kraken's co-CEO confirmed at the Washington World Economic Conference that it has secretly filed for an IPO, while Germany's largest exchange operator invested $200 million for a 1.5% equity stake. The valuation stands at $13.3 billion, down 33% from the $20 billion during last year's funding round, yet traditional financial institutions are still making bets at this juncture.
Kraken co-CEO Arjun Sethi confirmed at the Semafor World Economic Conference in Washington on Tuesday that the crypto exchange has confidentially submitted an application for an initial public offering.
This news comes alongside a $200 million investment from Deutsche Börse in Kraken's parent company, Payward, acquiring approximately 1.5% of fully diluted equity. The deal implies a valuation of about $13.3 billion, a 33% decrease from Kraken's $20 billion valuation during its $800 million funding round in November 2025.
Kraken initially submitted a draft S-1 to the U.S. Securities and Exchange Commission on November 2025, just one day after completing its funding round, which was supported by Citadel Securities, Jane Street, and DRW Venture Capital. The exchange has not yet disclosed the size or pricing of its planned offering, stating that it will finalize the terms after regulatory review is complete and market conditions stabilize.
At the conference, Sethi stated that the IPO push is part of a broader mission to democratize complex financial instruments. "What they ultimately want is access to what Citadel and Jane Street have, or what JPMorgan has—they want these tools to be accessible to them," he said. "That's our mission: how do we make all these products open?"
Deutsche Börse's investment deepens the commercial partnership first announced in December 2025, focusing on integrating Kraken's xStocks tokenized stock platform into Deutsche Börse's digital asset infrastructure.
Kraken has been actively expanding in recent months. The exchange launched CME futures trading in October 2025, allowing users to access traditional commodity and stock index contracts alongside cryptocurrencies. Its xStocks tokenized stock product surpassed $10 billion in cumulative trading volume in November, and in March, Nasdaq selected Kraken as the settlement layer for its own tokenized stock initiative.
The regulatory backdrop has also shifted dramatically in Kraken's favor. In March 2025, the SEC dropped its lawsuit against the exchange without admitting any wrongdoing, part of a broader retreat from crypto enforcement under the current administration.
Kraken is the second-largest centralized exchange in the U.S. after Coinbase, which went public via a direct listing in 2021.
