Kraken Secures $200 Million from Wall Street Giant Citadel

Key Highlights

• Kraken has reportedly secured $200 million investment from the Wall Street giant Citadel Securities, placing its valuation at $20 billion
• The Citadel investment brings Kraken’s total funding for the year to $800 million, including a $600 million raise in September
• This investment comes when the cryptocurrency exchange is planning for its IPO in 2026 

One of the leading cryptocurrency exchanges, Kraken, has received a major injection of investment of $200 million from Citadel Securities, a global market-making firm.

(Source: Arjun Sethi on X)

With this investment, the total valuation of the company reaches a whopping $20 billion. This funding comes just months after Kraken raised $600 million in September. 

Kraken Raises Investment Ahead of IPO in 2026

Before 2025, the company had raised a relatively modest $27 million. With this latest injection of cash, Kraken has gathered a total of $800 million in funding this year. This massive financial reserve is intended to boost its expansion plan and create a strong balance sheet ahead of a planned initial public offering, or IPO, in 2026.

“I am grateful to the partners who joined alongside me in that first tranche, including DRW, HongShan, formerly Sequoia China, Jane Street, Oppenheimer, IMC, Wintermute, and many others. Their willingness to step in at a crucial moment strengthened the foundation for everything that followed. And I am proud to welcome Citadel Securities as our partner in the second tranche, bringing total capital raised to $800M for Kraken. Their conviction reflects the strength of the work we have done and the long term opportunity ahead,” Arjun Sethi, co-CEO of the cryptocurrency exchange Kraken, stated in a post.

The September funding round witnessed many big investors from the worlds of finance and technology. This includes trending firms Jane Street, DRW Venture Capital, HSG (formerly known as Sequoia Capital China), Oppenheimer, and Tribe Capital. This funding round also received a major investment from the family office of Kraken’s co-CEO, Arjun Sethi.

“We’re excited to support Kraken’s continued growth as it helps shape the next chapter of digital innovation in markets,” said Jim Esposito, president of Citadel Securities.

As per the earlier statements, Kraken is planning to use its $800 million on three main priorities, including global expansion, launch of new innovative products, and preparing for its public stock market debut.

The company is actively growing its presence in Europe under a new regulatory framework while pushing its boundaries into Latin America, Asia, and Africa with its innovative products like xStocks. This service allows users outside the U.S. to trade tokenized versions of popular U.S. company stocks, like Apple and Tesla, on a blockchain network.

Apart from this, Kraken recently launched an app called Krak. It is designed to make sending money across borders instant and cheap. On this app, users can transact over 100 different assets to over 160 countries using simple handles called Kraktags. They can use both fiat and cryptocurrencies. 

Kraken is planning to launch its IPO in 2026. While the company had decided to go public back in 2022, it delayed those plans during a downturn in the crypto market. 

The current crypto market condition is also quite uncertain, as it witnessed the biggest liquidation of its history on October 10 after Trump announced tariffs on China. However, many experts believe that the market has enough liquidity to recover from that damage and enter into another rally.

Kraken Receives Investment after Strong Financial Performance 

This $20 billion valuation of Kraken comes after its strong financial results in 2025. According to the latest report, the crypto exchange has generated revenue of $648 million in the third quarter of 2025. This is almost a 50% rise from the previous quarter, setting a new all-time record for the company. 

“Adjusted EBITDA reached $178.6 million, increasing 124% quarter-over-quarter, as margins increased 9 points to 27.6%, reflecting disciplined cost management while continuing to invest in growth and innovation,’ stated in the report.

This growth follows a rise in the transaction volume, reaching $576.8 billion with a 26% quarter-over-quarter surge.

While major financial institutions are preparing to embrace the crypto sector, this investment is boosting confidence in crypto innovations. The involvement of Citadel Securities is particularly significant. The firm is a legendary name in traditional finance, handling more than a third of all stock trading in the United States. 

For years, under the leadership of billionaire Ken Griffin, Citadel was known for its caution regarding cryptocurrencies. Its decision to not only invest but also form a partnership with Kraken, which is showing an ongoing trend where Wall Street is opening doors for the crypto sector.