Kraken: The Transformation from Cryptocurrency Exchange to Financial Infrastructure Provider

After a long winter in the encryption industry, Circle's successful IPO brings new hope to the entire industry. As a veteran encryption exchange established in 2011, Kraken is also accelerating its listing process. Recently, Kraken announced that it will move its headquarters to Cheyenne, Wyoming. This move is not only a geographical change but also marks a shift in the company's strategic positioning.

Strategic Migration: Choosing a Friendly Regulatory Environment

Kraken has chosen Wyoming as its new headquarters, mainly focusing on the state's advantages in encryption regulations. Wyoming has established a regulatory sandbox that allows encryption projects to conduct product testing in a controlled environment and actively promotes institutional innovations such as stablecoins and DAO incorporation. In addition, the state plans to launch the official stablecoin WYST in August 2025, incorporating digital assets into its local financial strategy.

Kraken has had a long-standing interaction with the state of Wyoming. The company has previously donated to local universities for blockchain education and participated in hosting blockchain conferences. During the critical period before going public, establishing its headquarters in this location was a strategic move by Kraken in response to the complex regulatory environment.

Steady Operations: Building Reliable Financial Strength

In 2024, Kraken achieved an annual revenue of $1.5 billion, a year-on-year increase of 128%; net profit reached $380 million. The total asset scale of the platform reached $42.8 billion, with an active account number of 2.5 million, and the annual transaction volume surged to $66.5 billion, demonstrating stable overall operational performance.

To enhance market trust, Kraken has released its "Proof of Reserves" data. The latest figures show that its BTC reserve ratio is 114.9%, which can fully cover user asset demands. The company promises to increase the frequency of reserve audits to once every quarter and gradually expand the scope of the audits. These measures aim to convey signals of robust operations, transparent risk control, and a clear compliance path to the market.

Regulatory Game: Seeking Policy Support

The relationship between Kraken and the SEC is complex. Previously, the SEC sued Kraken, accusing its staking products of constituting an unregistered securities offering. In 2025, the SEC agreed to withdraw the lawsuit, but the court did not fully adopt Kraken's legal position that "the SEC has no authority to regulate encryption."

With the changes in the political landscape, Kraken has begun to actively seek policy support. The company has hired Washington policy experts with Republican backgrounds and donated $1 million to the presidential inauguration fund. This indicates that Kraken recognizes that, at this stage, political resources and compliance capabilities are redefining the core competitiveness of encryption exchanges.

IPO: Not just financing, but also a strategic transformation

Kraken plans to go public in the first quarter of 2026 and complete a round of financing between 200 million and 1 billion dollars before that. This funding is mainly for business expansion rather than maintaining daily operations, demonstrating the company's aggressive stance.

To create the "infrastructure" label, Kraken is laying out plans in multiple areas:

1. Launch Kraken Prime, entering the institutional services market.
2. Collaborate with the European digital bank Bunq to expand retail encryption financial services.
3. Incorporate Janover into the staking business system through strategic shareholding.
4. Completed the $1.5 billion acquisition of NinjaTrader and began offering traditional financial derivatives services to U.S. users.
5. Obtain MiFID license in Europe and launch compliant derivatives business.
6. Obtained EMI payment license in the UK, in conjunction with the global deployment of perpetual contracts and leveraged ETF products.
7. Plan to launch tokenized US stock business to break the time zone limitations.

These measures show that Kraken is trying to transition from an "exchange" to a "multilateral financial services network."

Conclusion: Embrace Change, Welcome New Opportunities

Kraken's transformation is not a departure from its original intention, but a proactive choice in line with industry development trends. As institutional dividends reshape the encryption narrative, Kraken chooses to be well-prepared before the opportunity arises. After Circle ignited the first spark for the U.S. stock market's encryption story, Kraken may become a key player in igniting the second flame.