FILE PHOTO: Kraken cryptocurrency exchange logo is seen in this illustration taken July 28, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
(Reuters) -Kraken, one of the world's largest cryptocurrency exchanges, said on Wednesday it has confidentially filed for an initial public offering in the U.S., as digital asset companies look to tap the new listings market before the 2026 midterm elections.
The company is poised to become the latest crypto exchange to list in the U.S., fueling competition in a sector where sentiment has turned more upbeat amid support from the Trump administration.
Companies such as stablecoin issuer Circle and crypto exchanges Gemini and Bullish have seen renewed success in going public in the U.S. this year.
President Donald Trump, who has pledged to make America the "crypto capital of the world", signed the Genius Act into law earlier this year, boosting confidence in the digital asset sector. The legislation, aimed at regulating stablecoins, comes alongside other measures such as the proposed Clarity bill, which includes proposed changes in crypto market supervision.
Kraken's announcement comes a day after the company said it was valued at $20 billion in its latest capital raising, a 33% increase in under two months. The funding involved participation from Wall Street heavyweights Jane Street and Citadel Securities.
The crypto exchange plans to go public in the first quarter of 2026, Reuters had reported last month.
With midterm elections less than a year away, analysts expect some urgency from crypto companies in pursuing IPOs to get ahead of any uncertainty. The presidential party tends to lose ground in midterm elections, which could reshape the landscape for the digital asset industry.
Crypto-focused asset manager Grayscale and custody startup BitGo are among the companies currently in the IPO pipeline.
Kraken, founded in 2011, said the number of shares to be offered and the price range have not yet been determined.
Initially focused on crypto, the company has expanded across assets classes in recent months, including equities with the rollout of commission-free trading.
(Reporting by Arasu Kannagi Basil and Pritam Biswas in Bengaluru; Editing by Shilpi Majumdar)
