Kraken Secures $200 Million Investment from Citadel Securities — Examine the Market Valuation Following the Agreement

Crypto exchange Kraken has secured $200 million from Citadel Securities at a valuation of $20 billion, furthering the Wall Street firm’s engagement in digital assets and strengthening the exchange in anticipation of a forthcoming stock market listing.

A representative from Kraken verified the funding round to Fortune, describing it as a strategic investment from the nearly 25-year-old market maker. This new influx of capital follows closely on the heels of Kraken’s completion of a separate $600 million financing in September, which was at a $15 billion valuation.

The previous funding round attracted a lineup of notable names from Wall Street and Silicon Valley, including Jane Street, DRW, HSG, Oppenheimer, Tribe Capital, and the family office of Kraken co-CEO Arjun Sethi.

Sethi confirmed the funding round in a post on X on Wednesday.

Kraken Acknowledges Its Previous $600M Raise, Bringing Total Recent Funding to $800M

Additionally, Kraken publicly acknowledged the $600 million raise for the first time, following a Bloomberg report in September that indicated the exchange was targeting a $20 billion valuation from a strategic investor.

Citadel Securities intends to collaborate with Kraken on risk management and market structure analysis, among other initiatives, as stated in a release shared by Fortune.

This agreement signifies a notable shift for Citadel. The firm, founded by Ken Griffin, had primarily refrained from engaging in market-making on crypto exchanges or investing directly in digital assets, citing regulatory uncertainties in the United States.

Following Donald Trump’s inauguration in January, the company began preparing to engage with platforms such as Coinbase, Binance, and Crypto.com.

Kraken Strengthens Balance Sheet Ahead of IPO as Citadel Expands Digital Asset Presence

Citadel’s recent actions extend beyond Kraken. Earlier this month, Ripple announced it had raised $500 million from Citadel, Fortress Investment Group, and other investors, indicating a broader interest from traditional finance in established crypto infrastructure.

For Kraken, the two recent funding rounds, totaling $800 million, significantly enhance its balance sheet in advance of an initial public offering planned for next year. The exchange aims to utilize the capital to expand into markets beyond North America and to develop new payment products.

The company has also been proactive in acquisitions. Since January, Kraken has disclosed a series of deals, including its $1.5 billion acquisition of futures trading platform NinjaTrader, bolstering its focus on derivatives and advanced trading tools.

Citadel’s Action Reflects Wall Street’s Perspective That Crypto Trading Infrastructure Is Here to Stay

Prior to these transactions, Kraken had raised only $27 million in venture capital, a relatively modest amount for one of the largest crypto exchanges globally. The recent capital influx elevates it into a different category and aligns it more closely with mainstream financial institutions.

Kraken is now preparing for a public listing as early as 2026. Bloomberg reported that the company is collaborating with Morgan Stanley and Goldman Sachs to lead the offering, positioning the Wyoming-based exchange as one of the next significant crypto entities to enter public markets.

For the digital asset sector, Citadel Securities’ $200 million investment in Kraken indicates that major market makers recognize enduring demand for regulated trading venues, even following a challenging bear market and a series of prominent failures.

The new valuation also illustrates that top-tier exchanges can still achieve double-digit billion price tags when they can showcase global scale and a clear trajectory toward profitability.

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