Cryptocurrency platform Kraken halts multibillion-dollar IPO initiative amid challenging market circumstances.

The parent company of Kraken submitted a draft S-1 registration statement to the SEC in November regarding the intended initial public offering of its common stock.

Kraken co-CEO Arjun Sethi (Paul Morigi/Getty Images for Semafor modified by CoinDesk)

Key points to note:

• Kraken has halted its IPO intentions after confidentially submitting to the SEC in November, with insider reports indicating it may consider a listing when market conditions are more favorable.
• This postponement follows a notable year for crypto IPOs, with entities such as Circle, Bullish, and Gemini successfully going public and collectively securing $14.6 billion in 2025.
• Kraken’s $800 million funding round at a $20 billion valuation, along with overarching industry trends, indicate that this year’s IPO hopefuls will prioritize financial infrastructure, compliance, and stable revenue rather than trading-centric models.

The cryptocurrency exchange Kraken, which disclosed its intention to go public four months ago, has now paused its plans, according to two sources familiar with the situation.

The firm is still contemplating an initial public offering, but likely not until market conditions improve, as stated by the individuals who requested anonymity due to the sensitive nature of the information.

A spokesperson for Kraken remarked, "As we announced in November, we filed confidentially with the SEC, and that is all we can really share."

The decline in crypto markets since October, when bitcoin BTC $71,235.78 reached an all-time high has caused firms to be increasingly cautious about pursuing public listings or securing additional capital as falling asset prices and reduced trading volumes impact valuations and investor confidence.

Payward, the parent of Kraken, confirmed that it confidentially submitted a draft S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) related to a potential initial public offering of common stock on November 19.

This occurred the day after Kraken announced its valuation at $20 billion following an $800 million funding round, which included a $200 million investment from Citadel Securities, aimed at facilitating its initiative to integrate traditional financial markets with blockchain infrastructure.

Last year, a more favorable regulatory environment at the SEC allowed several prominent companies, including Circle Internet (CRCL), CoinDesk parent Bullish (BLSH), and Gemini Space Station (GEMI), to successfully list their stocks. Data from PitchBook indicates that at least 11 crypto IPOs raised a total of $14.6 billion in 2025, a significant rise from just $310 million in 2024.

In 2026, the landscape for crypto IPOs is shaping up to be a crucial evaluation for the sector, with numerous infrastructure firms planning to go public. However, thus far, only the crypto custodian BitGo has successfully listed, experiencing a 44% decline in its stock price, partly due to a challenging market environment.

In contrast to Kraken, Securitize, a tokenization company closely associated with asset management leader BlackRock (BLK), has stated it still intends to proceed with its public offering. The firm aims to IPO as soon as it receives approval from the SEC, which is expected in the second quarter.

"We already raised $225 million through a PIPE as part of our SPAC merger when market conditions were more favorable, and the interest in tokenization remains robust despite current market conditions," stated Securitize founder and CEO Carlos Domingo in an interview with CoinDesk.

If 2025 was characterized by listings related to digital asset treasuries (DATs), 2026 is emerging as a year focused on financial infrastructure, according to Laura Katherine Mann, a partner at White & Case.

In a discussion with CoinDesk, she noted that the upcoming wave of IPO candidates is likely to emphasize compliance maturity, recurring revenue, and operational resilience, attributes that align more closely with the expectations of traditional public markets.

Earlier this year, Kraken dismissed its chief financial officer, Stephanie Lemmerman, as reported by two sources familiar with the situation.

Read more: Crypto custody firm Copper in early talks for IPO as crypto ‘plumbing’ becomes new Wall Street favorite

UPDATE (March 18 15:23 UTC): Includes details about the CFO’s departure in the final paragraph)