Kraken Reports Confidential IPO Filing After Valuation Drops to $13.3 Billion Mark

TLDR

• Kraken confirmed a confidential IPO filing at Semafor World Economy in Washington.
• April funding valued Kraken at $13.3 billion, down from a $20 billion peak in late 2025.
• Deutsche Börse agreed to buy a 1.5% fully diluted stake in Payward for $200 million.
• Kraken said about 2,000 accounts were affected in two insider-related support staff incidents.
• Kraken secured a Kansas City Fed master account for direct dollar settlement through Fedwire.

Kraken has moved closer to a stock market debut after confirming a confidential IPO filing. The update came as an April funding round valued the crypto exchange at $13.3 billion. That figure was below Kraken’s reported $20 billion peak in late 2025.

Kraken confirms IPO filing as valuation falls

Co-CEO Arjun Sethi confirmed the filing on Tuesday at Semafor World Economy in Washington, D.C. He said Kraken had “confidentially filed” for an initial public offering. The statement confirmed earlier reports about a renewed plan for public markets.

Semafor reported that the April funding round valued Kraken at $13.3 billion. That was down from a $20 billion peak reported in late 2025. The round included backing from Citadel Securities and other investors.

Kraken had paused earlier IPO plans as crypto prices fell and trading volumes weakened. Recent crypto listings also faced weak share performance. Yet the company did not rule out a later listing.

Sethi said Kraken wants to give retail users wider access to advanced trading products. He compared that goal to services offered by Jane Street and JPMorgan Chase. The pitch tied Kraken’s retail push to tools often used by institutions.

Deutsche Börse expands ties as Kraken broadens market access

Deutsche Börse said it will invest $200 million in Kraken through a secondary share purchase. The deal gives it a 1.5% fully diluted stake in Payward. It is expected to close in the second quarter of 2026.

The investment expands a partnership announced in December 2025. The two companies are working on regulated crypto trading and derivatives. They also cited tokenized assets and institutional liquidity services.

Kraken also secured a master account with the Federal Reserve Bank of Kansas City. The account gives direct access to U.S. payment rails, including Fedwire. That lets Kraken settle dollars without intermediary banks.

The account does not include interest on reserves or Federal Reserve lending access. Even so, it gives Kraken another route for U.S. dollar settlement. That came as the exchange worked to widen its financial infrastructure.

Insider incidents lead to extortion attempt

Kraken said two insider-related incidents involved support staff who accessed limited client data. About 2,000 accounts, or 0.02%, were affected. The company said no client funds or trading systems were compromised.

The incidents led to an extortion attempt by a criminal group. Kraken said the group claimed to have internal videos. The exchange said it refused to pay.

Kraken revoked access and identified the people involved. It also notified affected users and contacted law enforcement. The company said it is strengthening internal controls.

Galaxy Digital reported a separate cyber incident involving unauthorized access to a development environment. It said no client data or funds were affected. The cases showed continued security pressure across crypto firms.

The post Kraken Reports Confidential IPO Filing After Valuation Drops to $13.3 Billion Mark appeared first on CoinCentral.