Kraken Introduces ‘IPO-Style’ Token Offerings in MiCA-Compliant Debut on Legion

Crypto exchange Kraken has introduced Kraken Launch, a new platform aimed at providing retail investors with direct access to early token sales in a manner that complies with regulations.

This initiative, revealed in collaboration with the fundraising platform Legion, represents one of Kraken’s most significant efforts to transform the way digital assets are brought to market.

Kraken Launch Aims to Provide Retail Access to Early-Stage Tokens Under EU Regulations

For over ten years, a key issue in the crypto space has been the limited access to token launches for retail investors. Typically, retail participants only engage once tokens are publicly traded, long after early supporters and insiders have secured their shares.

Kraken Launch seeks to alter this situation by implementing a model it refers to as “IPO-style” token sales, which promises enhanced transparency, equitable access, and regulatory clarity.

We’re collaborating with @Legiondotcc to launch Kraken Launch, a new platform for exclusive token sales.
Fair access. Clear disclosures. Supported by Kraken’s 14 years of trust.
First sale coming soon https://t.co/xSD1QnncfN
but wait, there’s more pic.twitter.com/cy5KxmMikF

— Kraken (@krakenfx) September 18, 2025

This product launches as Europe’s Markets in Crypto-Assets (MiCA) framework begins to be implemented, with Kraken underscoring that all sales conducted via the platform will comply with established regulatory standards.

The company states that participants will have access to all relevant information, devoid of hidden allocations or insider arrangements, while benefiting from the security and compliance framework of the Kraken exchange.

“Kraken is laying the groundwork for the financial infrastructure of the future with crypto at its center,” remarked Brett McLain, the exchange’s Head of Payments and Blockchain.

He noted that the collaboration with Legion would aid in democratizing token sales by connecting communities with project developers, establishing what he termed a “higher standard” for future fundraising efforts.

Legion, known for its compliance-oriented fundraising technology, will be the foundation of this initiative.

Its system assesses participants based on on-chain history, social engagement, and developer contributions, ensuring that a portion of token allocations is directed to those who have significantly contributed to the ecosystem.

The remaining sales will be available on a first-come, first-served basis, both on Kraken Launch and Legion. Matt O’Connor, co-founder of Legion, described the partnership as a move towards transforming capital markets.

“The next Figma or Reddit won’t IPO. It’ll launch to its community on-chain,” he stated.

This announcement arrives as Kraken continues to report robust financial results despite market fluctuations.

In its Q1 2025 update, the exchange reported $472 million in revenue and $187 million in adjusted EBITDA, reflecting a 19% year-on-year increase in revenue and a 1% rise in EBITDA.

Trading volumes surged by 29% compared to the previous year, while funded accounts grew by 26%.

Kraken’s second-quarter results indicated a similar pattern. Revenue increased by 18% year-on-year to $411.6 million, although adjusted EBITDA decreased by 7% to $79.7 million as trading volumes softened following a strong first quarter.

Crypto exchange @krakenfx reported $411.6 million in revenue for the second quarter, marking an 18% year-on-year increase.#Kraken #Cryptohttps://t.co/WQ5PVTbM3p

— Cryptonews.com (@cryptonews) July 31, 2025

Total exchange volume reached $186.8 billion, up 19% year-on-year but down 11% from Q1. Assets on the platform saw a significant increase, rising 47% over the year to $43.2 billion by June.

The introduction of Kraken’s new product also coincides with reports that the company is preparing to raise $500 million at a $15 billion valuation ahead of a long-anticipated initial public offering set for early 2026.

Co-CEO Arjun Sethi has indicated that this fundraising could bolster investor confidence prior to the listing.

Kraken Launches Tokenized Stock Trading for European Investors

Crypto exchange Kraken has rolled out xStocks, a tokenized securities trading product designed to provide European investors with access to prominent U.S. stocks and exchange-traded funds (ETFs).

The service, launched on September 10 through Kraken’s PEDSL-CY entity, is limited to EU clients who pass an appropriateness assessment or qualify as professional investors. U.S. residents are not eligible, as xStocks are not registered under the Securities Act.

Launched in May, xStocks function as tokenized certificates that replicate the market price of actual securities, issued on-chain as SPL or BNB tokens. Each is backed 1:1 by the underlying asset and issued by Jersey-based Backed Assets (JE) Limited.

@Krakenfx launches xStocks — tokenized securities trading for EU investors, offering access to top U.S. stocks & ETFs on-chain.#Kraken #Europe https://t.co/ctgJXC9hxc

— Cryptonews.com (@cryptonews) September 10, 2025

Holders gain exposure to price fluctuations but do not receive shareholder rights such as voting or dividends. At launch, Kraken listed 60 assets, including Tesla, Apple, and GameStop.

This initiative follows increasing regulatory scrutiny of tokenized equities. In August, representatives from Kraken met with the U.S. Securities and Exchange Commission to discuss frameworks for tokenized trading, disclosure standards, and investor protections.

Regulators globally have cautioned that tokenized stocks often lack the protections found in traditional equity markets, despite their 24/7 availability.

Kraken has also been expanding its tokenization partnerships. In July, it collaborated with Backed Finance and BNB Chain to extend xStocks as BEP-20 tokens, allowing for broader access within decentralized finance.

The rollout illustrates Kraken’s strategy to connect traditional finance with blockchain. By bringing equities on-chain, the exchange is positioning tokenized securities as a new frontier in digital asset trading.

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