Kraken Secures $20 Billion Valuation With Latest Strategic Investment From Citadel Securities

Crypto exchange Kraken has hit a valuation of $20 billion following its latest funding rounds. Kraken raised $800 million in a dual-tranche funding round led by Citadel Securities with the aim of accelerating its efforts to bring traditional financial products on-chain.

Kraken Hit $20 Billion Valuation With Latest Funding Round

Kraken announced on Tuesday that it has hit a valuation of $20 billion after the completion of its latest funding round. The new milestone represents a ​33% increase in the valuation of the exchange in under two months, as digital market firms ‌continue to attract investor interest.

In September, Kraken hit the $15 billion mark after successfully raising $500 million in a strategic funding round. In a press release, Kraken announced that it raised $800 million in two tranches to raise its valuation to $20 billion.

The first tranche was led by institutional investors such as Jane Street, HSG, Oppenheimer Alternative Investment Management, and Tribe Capital. The second tranche was led by Citadel Securities as a strategic investor in Kraken with a contribution of $200 million. 

Kraken is a regulated trading platform, founded in 2011, that provides spot and derivatives markets, tokenized assets, staking, and payment services. The recent pro-cryptocurrency approach of U.S. President Trump has encouraged Kraken to diversify its offerings.

Funding To Fuel Kraken’s Global Service Expansion Plans

Kraken announced that the funds it received from its latest rounds will be used in helping the exchange accelerate its efforts to bring traditional financial products on-chain. According to the release, through targeted acquisitions, some of which have already been made, the company will expand its product suite organically and into new markets. 

The company highlighted Latin America, Asia Pacific, Europe, the Middle East, and Africa as new markets where it would be entering. In addition, it said that it will continue to expand its offerings beyond crypto.

It is an investment that is the long-term belief in the Kraken mission to create regulated infrastructure that the open financial system can trust, Arjun Sethi, Co-CEO at Kraken, announced in the press release. He adds that the company has been simple in its goal: to establish a platform where anybody can trade any asset, anytime, anywhere.

In October, Kraken announced it had purchased Small Exchange, a designated contract market licensed by the Commodity Futures Trading Commission, and that acquisition would expand its global trading infrastructure and help it introduce an entirely U.S.-native derivatives product suite.

Kraken also acquired Breakout, a trading firm, in September to introduce more products to the advanced traders. The company claimed that Breakout enables eligible traders to access up to $200,000 in notional capital by passing a strict test and performing at a level exceeding predetermined drawdown limits.

Sethi added that Kraken will be able to leverage the markets and technology of a new investor, Citadel Securities. The release indicates that Citadel Securities has invested $200 million in one of the two new tranches. 

With these acquisitions and partnerships, Kraken will look to expand its features beyond what it currently offers, while the funding will fuel its global expansion plans into markets.