Cryptocurrency exchange Kraken is reportedly preparing to raise $500 million in new funding, targeting a valuation of $15 billion.
Capital Growth of Kraken
According to a report by The Information that has been confirmed by Reuters, the exchange is looking to raise capital following a US court's dismissal of the Securities and Exchange Commission's (SEC) lawsuit against Kraken earlier this year. This decision alleviated some regulatory hurdles and opened new pathways for growth.
Regulatory Changes in the US
Institutional interest in cryptocurrency has increased over the past year due to clearer rules in the US. For instance, the GENIUS Act, enacted in mid-July, introduces new requirements for stablecoin issuers and sets reserve standards that align with traditional financial systems. Another bill, the CLARITY Act, proposed during 'Crypto Week', suggests that the SEC relinquish oversight of most cryptocurrencies to the Commodity Futures Trading Commission (CFTC).
Global Expansion Strategy of Kraken
Founded in 2011 and based in the US, Kraken is ramping up efforts to diversify its offerings and expand internationally. In March 2024, the company acquired the futures trading platform NinjaTrader for $1.5 billion. The Krak App was launched in June, supporting global payments in over 300 digital and fiat assets across 110 countries. Additionally, Kraken offers tokenized stocks and Bitcoin staking with Babylon.
Kraken is demonstrating strong growth amid changing regulatory norms and optimizing its offerings, positioning itself as a leader in the cryptocurrency industry.
