TLDR
- Kraken raised $800 million across two funding rounds, reaching a $20 billion valuation
- Citadel Securities invested $200 million in the second tranche and formed a strategic partnership with Kraken
- The first tranche was backed by Jane Street, DRW Venture Capital, HSG, and Tribe Capital
- Kraken generated $1.5 billion in revenue in 2024 and surpassed that figure by Q3 2025
- The exchange plans to expand into Latin America, Asia Pacific, Europe, the Middle East, and Africa
Kraken announced on Tuesday it secured $800 million in new funding across two separate tranches. The raise values the crypto exchange at $20 billion.
The second tranche included a $200 million strategic investment from affiliates of Citadel Securities. This investment came with a partnership agreement where Citadel Securities will provide expertise in liquidity provision and risk management.
The primary tranche drew backing from several institutional investors. Jane Street, DRW Venture Capital, HSG, Oppenheimer Alternative Investment Management, and Tribe Capital participated in this round. Kraken co-CEO Arjun Sethi’s family office also made a large commitment to the funding.
Founded in 2011, Kraken operates a regulated trading platform. The exchange offers spot and derivatives markets, tokenized assets, staking services, and payment solutions. Its infrastructure handles custody, clearing, matching, settlement, and wallet services internally.
This funding marks a major shift in Kraken’s capital structure. Prior to these rounds, the company had raised only $27 million in primary capital. Despite minimal outside funding historically, Kraken’s financial performance has been strong.
The exchange generated $1.5 billion in revenue in 2024. By the third quarter of 2025, it had already exceeded that annual total.
Expansion Plans and New Products
Kraken stated it will use the capital to scale global operations and deepen its regulated presence. The company plans to expand its product offerings through both organic growth and acquisitions.
Geographic expansion targets include Latin America, Asia Pacific, Europe, the Middle East, and Africa. Kraken already operates in multiple countries but aims to improve existing services while entering new markets.
Over the past year, Kraken has expanded beyond crypto-only services. The exchange acquired NinjaTrader to launch U.S. futures trading capabilities. It also began offering tokenized equities to its customers.
The company rolled out KRAK, a global app for payments, savings, and investing. These moves represent Kraken’s push into multi-asset trading beyond traditional cryptocurrency markets.
Strategic Partnership Details
Citadel Securities President Jim Esposito described Kraken as a key player in digital market innovation. The partnership will focus on liquidity provision and risk management support.
Citadel Securities previously invested in Ripple’s $500 million funding round earlier this month. The firm’s involvement signals growing ties between traditional finance institutions and crypto companies.
Kraken co-CEO Arjun Sethi told Yahoo Finance the company is not rushing to go public. He emphasized Kraken is financially sound and well-capitalized through private funding. This stance continues despite co-founder Jesse Powell previously targeting an early 2022 IPO, which never materialized.
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