Well-known cryptocurrency exchange Kraken raised $200 million, bringing its valuation to $20 billion, with Citadel Securities investing in the company.

One of the world’s largest cryptocurrency exchanges, Kraken, has received a $200 million strategic investment from Wall Street’s top market maker Citadel Securities, bringing its valuation to $20 billion. This marks the latest sign that traditional financial giants are accelerating their embrace of digital assets. According to media reports on Wednesday, a Kraken spokesperson confirmed the financing. Previously, the exchange completed a $600 million financing round in September last year, when it was valued at $15 billion. Investors included Jane Street, DRW, Sequoia China, Oppenheimer, Tribe Capital, and the family office of Kraken Co-CEO Arjun Sethi. This round of financing comes just months after the company's previous round. The two rounds combined total $800 million, providing a stronger capital foundation for Kraken’s IPO plans next year. Jim Esposito, President of Citadel Securities, stated in a release, “We are pleased to support Kraken’s continued growth and help shape the next chapter of market digital innovation.” According to the press statement, the market maker will work with Kraken in areas such as risk management and market structure analysis. Citadel Securities Accelerates Digital Asset Strategy Citadel Securities’ investment in Kraken is the clearest signal yet that one of America’s largest market makers is turning to digital assets. Founded by Ken Griffin, Citadel Securities has traditionally avoided market making or investing in digital assets at cryptocurrency exchanges, mainly due to regulatory uncertainty in the United States. However, after President Trump took office in January this year, according to media reports in February, the firm formulated plans to trade on exchanges such as Coinbase, Binance, and Crypto.com. Earlier this month, longtime blockchain company Ripple announced a $500 million fundraising from Citadel, asset management firm Fortress Investment Group, and other investors. Ripple is closely associated with the cryptocurrency XRP. Ample Capital in Preparation for IPO The $800 million raised in the two rounds will further consolidate Kraken’s balance sheet ahead of the IPO planned for next year. Prior to these two rounds, Kraken had only raised $27 million in venture capital. According to the press release, the exchange plans to use the new funds to expand markets outside North America and to develop new payment products. Founded in 2011, Kraken’s name recognition in the U.S. market is often not as high as its competitor Coinbase, but this exchange, which mainly serves institutional traders, has established a solid business foundation. In October last year, the exchange announced that its third-quarter revenue had more than doubled year-on-year, reaching $648 million. Aggressive Expansion of Business Territory Since January this year, Kraken has also made a series of high-profile acquisitions, including the $1.5 billion purchase of the futures trading platform NinjaTrader. Co-CEO Sethi stated in November last year, when asked about the company’s IPO plans: “As a private company, we have sufficient capital on our balance sheet today, we don’t want to rush into an IPO.” Media first reported last September that Kraken was considering a new round of strategic investment financing at a $20 billion valuation. This time, the Kraken spokesperson has also publicly confirmed the $600 million financing round for the first time. Risk Warning and Disclaimer The market carries risks, and investment should be approached cautiously. This article does not constitute personal investment advice, nor does it take into account the unique investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investing accordingly is at your own risk.