Key Takeaways
- Kraken’s IPO is speculated for Q1 of 2026 following strategic growth in the current bull market.
- Kraken’s IPO valuation of $15 billion compares with Coinbase’s $85 billion IPO valuation, as the market has growth potential.
- Kraken’s IPO potential gains buzz; however, market uncertainties in 2026 are a key factor.
Kraken, a leading U.S. cryptocurrency exchange, is making a lot of buzz in the market following news of its company seeking to raise $500 million at a $15 billion valuation in IPO (Initial Public Offering), which would be a 36% increase from its previous valuation of $11 billion in 2022.
This is a strategic move for the crypto exchange aimed at boosting investors’ confidence following its strong growth in recent months under co-CEO Arjun Sethi.
Kraken joins the likes of Circle and Coinbase, which are benefiting from favorable crypto market conditions and better regulatory policies in the U.S. under the leadership of Trump, after its securities violations were dropped by the U.S. SEC (Securities and Exchange Commission).
Kraken Aim for the Stars
Kraken’s push for an IPO (Initial Public Offering) in the first quarter of 2026 (Q1 ‘2026) is coming off a recent report published by its team recording over $400 million in revenue in Q2 of 2025, an 18% growth, $186.8B vol, $43.2B assets, 4.4M accts.
Kraken has also carried out major launches such as xStocks, free U.S. stocks, MiFID futures, Kraken Prime, launched a peer-to-peer payments app called “Krak money app”, and and acquiring futures platform NinjaTrader for $1.5 billion to boost its derivative presence in the crypto market as the U.S. company prepares to build more momentum under Arjun Sethi.
Kraken’s fundraising effort reflects a growing appetite for growth and strategic timing with other crypto companies that have gained following their IPO listing. Circle, the issuer of USDC stablecoin, jumped 484% since its June IPO debut at $31, closing Tuesday above $181. Trading platform eToro gained over 16% since its May Nasdaq listing, while Coinbase shares have surged 50% year-to-date.
To keep pace with the rapid growth of the crypto market, Kraken has introduced INK, a Layer-2 technology aimed at redefining trading experiences for its users.
Kraken Launches INK, a Layer-2 Technology
Similar to Coinbase launching its layer-2 technology called BASE, Kraken has followed suit by launching its network called INK. INK network is a user-focused layer-2 technology designed to enhance DeFi and CeFi on Ethereum, offering faster and cheaper transactions at the expense of its scalability and security.
How then does Kraken compare to Coinbase following a new wave of IPO growth in the crypto space?
Kraken IPO Evaluation in Comparison with Coinbase
To best evaluate the IPO comparison between Kraken and Coinbase, we will analyze the points based on existing data, such as valuation, business existence, regulatory standing, investment potential, and risk of market volatility in 2026.
IPO Valuations
In 2021, Coinbase went through a direct listing valued at a market cap of around $85 billion before its IPO. Its company raised $547 million in funding rounds at a $69 billion valuation following strong interest from investors in the bull market of 2021, as it was one of the top U.S. crypto exchanges generating over $1.8 billion in revenue.
However, Kraken is reported to be seeking around $500 million in funding, valued at around $15 billion, from its $11 billion valuation of 2022. Although its IPO valuation is currently undisclosed, pre-IPO rounds suggest a lower valuation than Coinbase’s $85 billion value due to market share and unexpected market conditions.
Kraken’s current market valuation is way below Coinbase’s $69 billion pre-IPO valuation, signifying over 22% decline when compared with both exchanges.
Business Longevity and Regulatory Standing
Kraken is one of the oldest crypto exchanges, delivering services for 14 years in the crypto space without security incidents or hack scandals that have plagued many crypto exchanges, giving Kraken a boost towards its IPO.
Recent approval to expand its services after securing an EU MiCA license has highlighted recent SEC regulatory policies favoring many crypto exchanges. However, Coinbase has come under a lot of scrutiny with the SEC in the last few years despite maintaining a strong leadership influence in the crypto space.
Both Kraken and Coinbase benefit from their Layer-2 solutions (INK and BASE), which leverage Ethereum for scalability and security. Coinbase BASE possesses a first-mover advantage over Kraken’s INK, given Coinbase’s brand and exposure in DeFi.
Kraken IPO Investment Opportunity and Risk
Although Kraken’s $15 billion valuation is modest compared to Coinbase’s IPO valuation, there is strong potential for Kraken to see significant growth due to its authority in the crypto space as a top exchange.
However, a bear market in 2026 could affect the potential of Kraken’s IPO due to market volatility and a potential decline in trading activities and revenue streams. A change in regulatory policies could force investors to lower their risk appetite, which could affect its IPO.
Conclusion
Kraken’s IPO is a good opportunity for many investors as the top crypto exchange has demonstrated relevance in the crypto space since acquiring NinjaTraders and offering DeFi opportunities through INK. Its IPO could face market volatility in 2026 and has a smaller market share when compared with Coinbase.
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