The new funding involves major institutional investors and highlights Kraken's expanding role in the crypto exchange sector.

Kraken said today it raised $800 million across two different tranches over the past two months, giving it a valuation of $20 billion as the US crypto exchange fuels its move toward an initial public offering.

The primary tranche was led by institutional investors, including Jane Street, DRW Venture Capital, HSG, Oppenheimer Alternative Investment Management, and Tribe Capital, along with a commitment from Kraken co-CEO Arjun Sethi's family office. An agreement for a subsequent $200 million strategic investment came from Citadel Securities.

Kraken has been scaling its global operations, mostly through acquisitions, ahead of a reported IPO planned for early next year. Most recently, the company bought Small Exchange for $100 million to launch a US derivatives trading platform.

Kraken restructured in October 2024 with Tribe Capital co-founder Arjun Sethi taking the reins as co-CEO alongside David Ripley.

The firm said it earned $472 million in revenue in the first quarter of 2025, up 19% from the prior year. Among crypto exchanges with USD support, Kraken generated $40.5 billion in trading volume last month.