Latest news with #Kraken
Forbes
2 hours ago
- Business
- Forbes
Crypto IPO: 3 Things You Need To Know About The IPO Season
The Wall Street sign in the Financial District of Lower Manhattan in New York City. Circle's successful IPO has sent a signal. A strong one. The crypto world is heating up again, but this time, it's happening on Wall Street. Crypto companies are making a comeback after a long period of regulatory uncertainty. Circle, the stablecoin issuer, has initiated a global sensation in capital markets. Understandably so. Circle's recent debut on the New York Stock Exchange as CRCL was impressive, to say the least. CRCL's share price skyrocketed nearly 600% from its IPO price of $31 to a high of $215 during the day. With a market cap of $45 billion, Circle has quickly become the representative of a new trend, giving rise to a crypto IPO season. Was it a flashy debut? Yes, and for all good reasons. Circle's IPO, the biggest in recent history, marks a major milestone in the industry's journey toward mainstream acceptance. USDC, Circle's flagship stablecoin, is backed by over $32 billion in reserves and is already a core component of onchain finance, serving as a payment medium that dominates the whole crypto ecosystem. But there are three key things you need to know about this year's IPO season to understand this phenomenon. 1. It's Only The Beginning Of Crypto IPOs Just days after Circle's IPO, Gemini, the crypto exchange founded by Tyler and Cameron Winklevoss, confidentially filed paperwork for its own IPO in the U.S. At the same time, all eyes moved onto Kraken, which is reportedly preparing to go public sometime in early 2026. Another company making moves is BitGo, a regulated U.S. crypto custodian. Back in February, reports suggested it was aiming for an IPO as early as 2025. A few other names also stand out as potential IPO contenders: These companies span the entire spectrum, from custody and analytics to wallets and infrastructure. What they have in common is a fresh appetite for public capital and growing investor interest, especially institutional one. As one analyst put it, 'After watching Circle's stock take off, any crypto firm with a clear business model is now looking at the IPO route seriously.' 2. The IPO Process Although the range of companies participating in the IPO summer is wide, crypto exchanges are leading the charge in pursuing US stock market listings. Think Gemini, Kraken, Bullish Global, FalconX, and Bithumb. These types of businesses are particularly well-positioned for public listing due to their strong cash flows, large customer bases, and stable business models that appeal to traditional investors. There are different ways companies can go about executing public offerings. Traditional IPOs remain the gold standard, particularly for mature companies with strong compliance records and established business operations. However, this process is very complex and time-consuming, making it most suitable for larger platforms with proven business models and solid profitability. That's why for smaller cryptocurrency companies seeking a faster path to public markets, reverse mergers have become a popular alternative. Companies, such as TRON, have successfully leveraged this approach by acquiring existing public companies to quickly gain access to the stock market, bypassing the lengthy traditional IPO process. Meanwhile, some companies are opting for direct listings. This is shown by Kraken's approach, which achieved a $16.2 billion valuation. They were able to create market liquidity for their shares without the need to raise new capital, making it ideal for firms that don't necessarily require additional funding but instead want to provide exit opportunities for existing shareholders. 3. High Crypto IPO Expectations Circle has definitely set a high bar. Its stock soared, boosting confidence across the crypto sector. But Circle isn't your typical crypto company. Their stablecoin, USDC, is a go-to onchain payment solution. In addition, its business model—earning yield on reserve assets—is easy for traditional finance folks to understand. Retail and institutional demand are growing, and with a government no longer hostile, investors see 2025 as the year when crypto companies leverage the IPO playbook. The dramatic shift in institutional adoption is particularly compelling. As of January 2025, 86% of institutional investors reported having exposure to digital assets or planned to make digital asset allocations later in the year. Additionally, recent success stories have proven that crypto companies can achieve substantial valuations in public markets. Circle's roughly $1.1 billion public listing formed the largest crypto IPO in recent history, sparking high expectations among industry experts that more digital asset companies will soon follow suit. However, only time will tell if this crypto IPO summer turns into an IPO supercycle, but Coinbase being the best performing S&P500 stock in June is definitely a promising sign.
Yahoo
2 hours ago
- Business
- Yahoo
Kraken Launches Crypto's Attempt at a Venmo-Killer
Kraken's rising from the decentralized deep to capsize a big ship: traditional finance. The crypto platform launched a peer-to-peer payments app yesterday that lets users instantly send 300+ crypto tokens, stablecoins and fiat currencies to friends and family in more than 100 countries. Anyone who has had to split a check with new hostel friends knows that rivals Venmo and Zelle only support payments between US users. Kraken's app, called Krak, also doesn't charge fees for cross-border payments or transfers from one currency to another, setting it apart from PayPal. Kraken's app is meant to serve as an entry point to digital assets for the crypto-cautious, with rewards of up to 10% on Krak account balances to entice new users. Krak is also part of Kraken's push into traditional finance to diversify revenue ahead of a planned IPO. READ ALSO: Dwindling IPOs Reward Investors With Return Bonanza and After Reclaiming 'World's Most Valuable Company' Crown, Nvidia Gilds the Tiara Those are the words of Kraken exec Mark Greenberg as Kraken and other crypto companies try to put their blockchain-backed spins on traditional finance: Kraken debuted tokens that represent US equities for non-US users, letting them trade representations of stocks like Nvidia and Tesla over the blockchain. It also bought futures-trading platform NinjaTrader this spring for $1.5 billion. Crypto exchange Coinbase teamed up with Shopify to launch a payments platform (creatively named Coinbase Payments) that lets merchants accept payments using the stablecoin USDC. The issuer of USDC, Circle, also introduced a cross-border payments network this spring. At the same time, TradFi isn't going down without a fight: JPMorgan Chase, Citigroup and Wells Fargo are reportedly exploring the creation of a joint stablecoin, and brokerages like Morgan Stanley and Charles Schwab are working on adding crypto trading. Hot Coin Summer: The line between traditional and digital finance has grown blurry in the Trump era as regulatory actions against crypto companies have eased. In March, the SEC dropped a lawsuit accusing Kraken of operating an unregistered securities exchange, following the agency's abandonment of a similar suit against rival Coinbase. Both sides of the finance world have read the new room and aren't missing the opportunity to try to eat each other's lunch. This post first appeared on The Daily Upside. To receive delivering razor sharp analysis and perspective on all things finance, economics, and markets, subscribe to our free The Daily Upside newsletter. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17 hours ago
- Business
- Yahoo
Crypto's Audacious Bid to Rebuild Stock Market on the Blockchain
(Bloomberg) -- First, they came for the currency market. Then, the money market. Now, crypto's big disruptors are targeting the multi-trillion-dollar heart of global capitalism: the stock market. Philadelphia Transit System Votes to Cut Service by 45%, Hike Fares US Renters Face Storm of Rising Costs Squeezed by Crowds, the Roads of Central Park Are Being Reimagined Mapping the Architectural History of New York's Chinatown US State Budget Wounds Intensify From Trump, DOGE Policy Shifts Dismissed as a fringe fantasy years ago after a regulatory backlash and the collapse of early projects, the first attempts by the digital-asset industry to put shares on the blockchain fizzled out. This time, a new cohort of players — from crypto giants Coinbase Global Inc. and Kraken to retail favorite Robinhood Markets Inc. — is making a fresh run at rewiring the very plumbing that governs equities around the world. The ambition is predictably audacious from a crypto community built to gut out the middlemen and outsmart the regulator. The promise: a financial system where trading Apple Inc. or Tesla Inc. stock is as fast and easy as sending a text message. No more extended settlement periods. Just instant, cross-border transactions, around the clock, five, or even seven, days a week. But beneath the braggadocio lies profound challenges that threaten this tokenization effort, or the process of creating digital representations of real-world assets on a decentralized network. The effort runs straight into custody and counterparty risk: each token is typically backed by a real-world share that must be funded and held in custody. Stock investing also involves a complex web of legal protections, ownership structures and corporate actions deeply embedded in centralized, regulated systems. This world of complexity makes tokenizing stocks a world away from the likes of digital art. 'You are changing the way things are trading,' said Bryan Routledge, an associate professor of finance at Carnegie Mellon University's Tepper School of Business. 'You're not just changing the format of an asset.' Despite the hurdles — and fundamental questions about whether demand for these products even exists — players are lining up. Kraken's Bermuda entity plans to start selling tokenized stocks in late June, and Robinhood is preparing a similar service in Europe. Many such efforts are debuting in overseas jurisdictions, seen as crucial test beds while the US regulatory picture remains in flux. Startups like Ondo Finance are planning launches this summer, and Dinari hopes to offer tokenized equities trading in the US in the coming months. Galaxy Digital has been talking with regulators about tokenizing its shares. Securitize, a digital-asset securities platform known for helping BlackRock Inc. digitize a money-market strategy, is another key player at the center of the push. 'We are talking to many different asset issuers of both existing publicly traded equities as well as about a lot of organizations thinking about doing on-chain IPOs,' said Michael Sonnenshein, chief operating officer of Securitize. The token, stored in a crypto wallet like an e-ticket on a phone, is a unique, transferable digital receipt. It's the verifiable proof of a claim on one real share, held in trust by a regulated financial institution. Whether it truly mirrors a stock's price comes down to a simple test: can it be swapped for the real thing? In the safest setups, the answer is yes, which keeps prices in sync. But often, the token is just a digital I.O.U. from the issuer, and its value depends entirely on trusting that company to pay up. The initiative isn't happening in a vacuum. It's one front in a broader effort to move real-world financial assets onto blockchains, a market McKinsey & Co. projects could reach $2 trillion by 2030. So far, the clearest successes have been in tokenizing assets with simpler plumbing. The market for on-chain US Treasuries, led by firms like Securitize and Ondo, now exceeds several billion dollars. Major players like BlackRock and Citigroup are actively digitizing funds to improve efficiency and appeal to crypto-friendly users. But tackling public equities is a higher order of ambition, targeting the dynamic, live-wire infrastructure of capitalism itself, where corporate actions like mergers, stock splits, and shareholder votes happen in real time. Fueling the push, the election of Donald Trump has raised hopes among proponents that their plans can achieve critical mass with regulators. Hester Peirce, who leads the Securities and Exchange Commission's crypto task force, has spoken favorably about tokenization in recent months, suggesting that trial runs in contained settings — known as 'sandbox structures,' where firms can operate under relaxed rules to test new models — may be a way to test the concept. That way, 'innovating firms are able to get to market quickly under appropriate, reasonably calibrated conditions,' she said in a May 8 address. 'They do not have to comply with inapt regulations, which, in many cases, were developed well before the technologies being tested existed and may be obviated by attributes of that technology.' Still, as each player builds its own token with a unique risk profile, it's an open question whether the industry will manage to create a unified and liquid market. Regulators' caution is rooted in recent history. The idea of a blockchain-based stock was broached as far back as 2015 by the former chief of but efforts have remained niche. Back in 2021, Exodus Movement Inc. tokenized its shares via Securitize, yet today those shares still account for around 78% of all tokenized equities. The total market stands at just $388 million, according to tracker a fraction of the $120 trillion-plus global equities market. A more ominous precedent was set by the Mirror Protocol on the Terra blockchain, which drew SEC scrutiny even before Terra's collapse triggered some $40 billion in losses. That history explains the establishment's measured pace. Depository Trust & Clearing Corp., which settles most US stock trades, is treading lightly, with a planned pilot later this year expected to involve a small cohort of institutional players in a controlled setting. 'We have no desire to do this in a big bang,' said Nadine Chakar, global head of DTCC Digital Assets. Proponents argue the push creates new rails for global finance. In places with unreliable financial systems, the appeal of direct access to US equities is clear. The vision, according to DTCC's Chakar, is one of 24-hour trading, faster settlement, and the ability to use stocks as collateral in decentralized apps. This resonates with crypto-native investors who, according to Wyatt Lonergan of VanEck Ventures, 'want the comfort of, say, Apple stock' within their digital ecosystem, especially during volatile crypto markets. But for the average US investor, these are largely solved problems, with fractional shares and one-day settlement already standard. This raises the central, unanswered question of whether this represents genuine, scalable demand or simply a convenient narrative. With no real evidence that mainstream investors are asking for these products, the tokens risk being viewed as just the latest shiny digital object for platforms in a constant search for new revenue streams. All told, it's the latest offensive in crypto's war on Wall Street. The industry is riding a $3 trillion bull market, a political thaw in Washington, and fresh momentum in infrastructure. 'It definitely will be competition,' Routledge said, predicting a clash with the entire ecosystem of exchanges and brokers. 'If you look at the growth of trading in cryptocurrencies, it was this analog of tokenization that really lit the fuse.' America's Top Consumer-Sentiment Economist Is Worried How to Steal a House Inside Gap's Last-Ditch, Tariff-Addled Turnaround Push Apple Test-Drives Big-Screen Movie Strategy With F1 Luxury Counterfeiters Keep Outsmarting the Makers of $10,000 Handbags ©2025 Bloomberg L.P. Sign in to access your portfolio
Business Wire
21 hours ago
- Business
- Business Wire
Krak Is Here: Kraken Launches New All-in-One Global Money App
CHEYENNE, Wyo.--(BUSINESS WIRE)--Kraken, a technology platform built on crypto that unlocks access and reduces inefficiencies to drive financial freedom, today unveils the launch of Krak: a next generation, all-in-one global money app. The Krak app reimagines what constitutes money and value, empowering users to instantly transact across borders for almost no cost, while also earning competitive rewards on their account balances. 'We built and launched the Krak app because the financial system has been stuck in the past, and we think it's time to do something about it," said Arjun Sethi, Kraken's co-CEO. Share Built for a global, digital-first generation, the Krak app blends the freedom of crypto with the familiarity of everyday finance. Users can seamlessly manage over 300 different fiat and digital assets, making Krak app the ultimate portable financial command center built for the modern era. 'We built and launched the Krak app because the financial system has been stuck in the past, and we think it's time to do something about it. With Krak, we're taking a bold step toward rebuilding what we consider to be the most important layer of the global economy: How people move and use money,' said Arjun Sethi, Kraken's co-CEO. Powered by crypto innovation and strengthened by Kraken's trusted network of banking relationships and payment partnerships, Krak challenges the outdated norms of legacy finance. Whether sending money to family abroad, growing balances, or managing spending on everyday purchases, users can rely on the Krak app as a seamless, all-in-one financial hub – giving them control of their assets, on their terms. The Krak app at launch will feature: Peer-to-peer payments: Instantly and affordably send funds to other Krak app users across 110 different countries. Using Kraktags, a personalized payment ID, app users can seamlessly send and request payments across 300+ assets spanning crypto, stablecoins and fiat currencies (where available) without inserting bank details or crypto wallet addresses. Dedicated spend and earn accounts: Seamlessly make payments and earn rewards with no lock-up periods, no minimum contributions, or subscriptions needed. At launch, eligible users can earn up to 4.1% rewards on USDG stablecoin balances, as well as additional earning opportunities across 20+ digital assets up to 10%. What the future holds for Krak: The release of physical and virtual Krak cards, unlocking seamless spending at millions of merchants worldwide, both online and in-store, using fiat currencies and cryptoassets in the Krak app. A range of pay-in-advance services, ranging from lending to loans and credit card programs. Sethi added: 'We believe that basic financial services should be universally accessible, and that money should move as easily as information does. Krak is just the beginning. We see it as a foundation. A core building block for how people everywhere will manage their money in the future.' For more information on Kraken's new Krak app, please visit our dedicated landing page. The new Krak app is also available to download on Android at the Google Play store, or on iOS at the Apple App Store. About Kraken Kraken is one of the world's longest-standing and most secure crypto platforms. Our mission is to accelerate the global adoption of crypto, so that everyone can achieve financial freedom and inclusion. Globally, Kraken clients trade more than 300 digital assets and 6 different national currencies, including GBP, EUR, USD, CAD, CHF, and AUD. Founded in 2011, Kraken was among the first to offer spot trading with margin, parachain auctions, staking, regulated derivatives and index services under one roof. With millions of individuals, traders and institutions around the world, Kraken offers professional 24/7/365 client support along with one of the fastest, most performant trading platforms available. Kraken has set the industry standard for transparency and client trust, and was the first crypto platform to conduct Proof of Reserves. Kraken markets can be monitored and traded via the web or through the Kraken and Kraken Pro iOS and Android apps. For more information about Kraken, please visit
Yahoo
a day ago
- Business
- Yahoo
PayPal, Block slip after Kraken launches peer-to-peer payments app
As previously reported, Kraken co-CEO Arjun Sethi announced in a blog post earlier that the company has launched its own peer-to-peer payments app, Krak. 'Krak is an all-in-one global money app built from the ground up on crypto infrastructure. It blends the familiarity of traditional finance with the speed, openness and flexibility of modern blockchain networks. Krak isn't just another wallet or payments tool. It's a full-stack rethink of how money should work,' Sethi wrote. In Thursday morning trading, shares of PayPal (PYPL) and Block (XYZ) are each down about 1%, while Visa (V) and MasterCard (MA) are both down fractionally as well. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on PYPL: Disclaimer & DisclosureReport an Issue Barclays Bans Crypto Credit Card Purchases, but at What Cost? PayPal announces multi-year agreements with Big Ten, Big 12 Conferences Circle Internet Group (CRCL) Taps Into Stablecoin Boom Amid Frothy Valuation Option traders moderately bearish in PayPal with shares down 0.57% 'Deserves a Revisit': Growth Ahead for Yum Brands (NYSE:YUM), Says JPMorgan
