Original | Odaily Planet Daily ( @OdailyChina )
Author | Dingdang ( @XiaMiPP )
After Circle went public, everything started to accelerate.
On June 5, Circle was listed on the New York Stock Exchange for the first time. In less than three weeks, its stock price soared nearly tenfold, which can be regarded as the most symbolic event in the crypto industry in the past five years. Capital has finally re-recognized the financial attributes of crypto, especially those companies that have both compliance routes and can clearly explain the growth logic.
In fact, Kraken had already disclosed its listing plan to the outside world in March this year, but it was only after Circles successful listing that everything was taken seriously by the market again.
Recently, the San Francisco-based crypto exchange, founded in 2011, announced that it will officially move its headquarters to Cheyenne, Wyoming. The reason is that the clarity and inclusiveness of the states digital asset policies will help Kraken establish a compliant tone and strategic positioning for the public market.
This is not only a geographical migration, but also a sign that Kraken is transforming from a participant in the decentralized narrative to a builder of the institutional financial system.
Wyoming: Not retreating, but strategically relocating
This headquarters relocation is not a passive choice to escape the regulatory pressure in San Francisco, but a well-thought-out strategic deployment.
Kraken publicly emphasized that the reason for moving its headquarters to Wyoming is that the state has long had advantages in crypto regulations. Wyoming has a regulatory sandbox that allows crypto projects to test products in a controlled environment. It also actively promotes institutional innovations such as stablecoins and DAO legalization, providing the entire industry with a test field that is compatible with cutting-edge technology and legal order.
In fact, the interaction between Kraken and Wyoming has already begun. They donated $300,000 to the University of Wyoming for blockchain education and also participated in hosting the local blockchain conference. More importantly, the state plans to launch the official stablecoin WYST issued by the government in August 2025, incorporating digital assets into the local financial strategy.
Setting up its headquarters here during the critical window period before listing is a preemptive deployment made by Kraken in the face of a complex regulatory environment.
Poised for success: A solid balance sheet
Kraken’s performance may not be “explosive”, but it is stable enough.
In 2024, the companys annual revenue reached US$1.5 billion, a year-on-year increase of 128%; net profit reached US$380 million; the total platform assets reached US$42.8 billion, the number of active accounts was 2.5 million, the annual trading volume reached US$665 billion, and the overall operating performance was stable.
At the same time, Krakens proof of reserves has also become a tool to enhance market trust. In May, the latest data released by Kraken showed that its BTC reserve rate was 114.9%, which can fully cover the asset needs of users and leave a safety cushion. In response to the outside worlds expectations for transparency, Kraken promised to increase the frequency of reserve audits to once a quarter, and gradually include more asset types to expand the scope of audit coverage. In addition, Kraken has initiated fund distribution to FTX creditors, indicating that its platforms ability to handle legacy risks is improving.
All these measures are the triple signals that Kraken hopes to convey to the market before its IPO: sound operations, transparent risk control, and a clear compliance path.
Regulatory Game: Laying Out the Political and Policy Path
It is worth noting the complex interaction between Kraken and the SEC.
Previously, the U.S. Securities and Exchange Commission (SEC) sued Kraken, alleging that its pledge products constituted an unregistered securities offering. In 2025, the SEC agreed to drop the lawsuit, did not require Kraken to admit to violations, and did not impose fines; but the court still did not fully adopt Kraken’s legal position that “the SEC has no right to regulate cryptocurrencies.”
Still, the changing political landscape opened another door for Kraken.
After Trump was elected, Kraken’s chief legal officer Marco Santori resigned and was on the list of candidates for the new CFTC chairman. At the same time, Kraken also publicly recruited Washington policy experts with Republican backgrounds and donated $1 million to the Presidential Inaugural Fund, joining Coinbase on the list of political donations.
Kraken clearly realizes that at the current stage, political resources and compliance capabilities are redefining the core competitiveness of crypto exchanges.
Circle’s success has proven one thing: in the right political climate, the U.S. stock market can re-embrace the crypto narrative.
IPO: Not only a financing window, but also a symbolic battle
Krakens IPO is expected to take place in the first quarter of 2026, and they plan to complete a round of financing of US$200 million to US$1 billion before then. They have already started preliminary contacts with Wall Street investment banks such as Goldman Sachs and JPMorgan Chase.
It is worth noting that this money is not used to maintain daily operations, but for business expansion. A story that does not rely on financing to survive the winter, but takes the initiative, is the version that the capital market wants to hear most.
Kraken is building out its presence around the “Infrastructure” tag:
From launching Kraken Prime, which competes with Coinbase Prime and FalconX; to cooperating with European digital bank Bunq to expand retail crypto financial services; to incorporating Janover into the staking business system through strategic shareholding, and jointly expanding the financial landscape.
In addition, they recently completed the $1.5 billion acquisition of NinjaTrader and began to provide traditional financial derivatives services to American users. This is one of the largest acquisitions between a crypto company and TradFi.
In Europe, Kraken obtained the EU Markets in Financial Instruments Directive (MiFID) license by acquiring a licensed institution in Cyprus and officially launched its compliant derivatives business; the UK has also obtained the EMI payment license to cooperate with the global deployment of perpetual contracts and leveraged ETF products.
Even tokenized U.S. stocks have been included in the product roadmap. Apple, Tesla, Nvidia and other targets will be launched in the form of tokens through Kraken’s platform, breaking the trading time zone restrictions and achieving “24/7” circulation.
They know that an IPO is not just about selling a story, but about polishing a product line to become more like an infrastructure company.
In this process, Kraken is trying to complete a deeper brand leap: evolving from a trading platform to a multilateral financial services network.
Epilogue: From rebel to competitor within the system
In the early stages of development, Kraken was restrained from integrating with traditional finance. Now, they have submitted their IPO intentions to Wall Street, embraced politics, embraced legislation, and embraced the rule of man system.
This is not a betrayal of the original intention, but a proactive growth. Institutional dividends are reshaping the leaders of the next round of crypto narratives, and Kraken chose to stand in line before the wind blows.
Circle ignited the first fire in the U.S. stock crypto story, and Kraken may hope to be the igniter of the second fire.
