Crypto exchange Kraken is working on a new fundraising round that could raise between $200 million and $300 million and push the company’s value to about $20 billion. The talks are not finished, and the deal depends on how markets perform, but the effort marks a major step for the firm as it prepares to go public. Kraken is officially called Payward Inc. and started in Cheyenne, Wyoming, in 2011. For years it raised only modest sums, collecting about $27 million before a large $500 million round earlier this year set its value at $15 billion. The latest effort shows private investors are still eager to put more money into big crypto companies before an initial public offering.
Kraken plans to use the new capital to compete with Coinbase, which already trades on public markets, and other global exchanges. The company recently began offering tokenized stocks and exchange-traded funds to expand its product line. Industry watchers say that such moves help the firm build out new services and position itself for its IPO. Kraken has picked Morgan Stanley and Goldman Sachs to manage the listing, which people close to the matter say could come in the first quarter of next year. Bloomberg first reported in March that the company wanted to go public, and momentum has built since then.
The broader cryptocurrency industry is also pushing to raise money as U.S. regulators show signs of easing their stance and mainstream adoption grows. Digital asset companies are turning to both private fundraising and public markets to expand services, obtain licenses, and prepare for listings. Investors see large exchanges as gateways to crypto adoption and believe these businesses will benefit if digital assets continue to gain ground. The push for IPOs reflects confidence that the market for regulated exchanges and stablecoins will stay strong even as the industry faces new competition.
Kraken’s rival Coinbase already secured a spot on Wall Street, and the two companies are competing for traders worldwide. By raising funds before its IPO, Kraken aims to close the gap and show it can scale like Coinbase. The planned valuation of around $20 billion would still put it behind Coinbase, which at its peak traded at higher levels, but would mark one of the largest crypto listings in recent years. The move also comes as exchanges experiment with tokenized assets, a trend that blends traditional finance with blockchain technology.
At the same time, Tether Holdings, the company behind the world’s largest stablecoin, is exploring a private funding round that could raise between $15 billion and $20 billion. People familiar with the matter said the company might sell about 3 percent of its shares in a private placement. If the deal lands at the higher end, it would value Tether at roughly $500 billion, putting it in the same league as companies like SpaceX and OpenAI. Such a valuation would make Tether one of the world’s most valuable private firms, far beyond the current $30 billion valuation of its stablecoin rival Circle Internet Group.
Tether has hired Cantor Fitzgerald as the main advisor for the deal. The funding would come through issuing new shares, not by selling stock owned by current investors. Tether CEO Paolo Ardoino confirmed on X that the company is considering raising money from large investors. He said the funds would be used to expand operations not only in stablecoins but also in areas like artificial intelligence, commodity trading, energy, communications, and media. The company operates from El Salvador, a nation that has positioned itself as a hub for crypto activity since adopting Bitcoin as legal tender in 2021.
The possibility of Tether reaching a $500 billion valuation has raised questions about how sustainable the stablecoin business model is, especially at a time when falling U.S. interest rates could reduce the profits these firms earn from reserves. Stablecoins like Tether and Circle’s USD Coin have gained popularity because they provide liquidity and act as a bridge between traditional finance and digital assets. Yet the size of Tether’s planned fundraising would be unprecedented in crypto, placing it among the biggest private deals ever attempted. Whether investors will commit such large sums remains uncertain.
Both Kraken and Tether highlight how the crypto industry is evolving in 2025. Exchanges and stablecoin issuers are no longer small startups. They are now major players that attract Wall Street banks like Goldman Sachs and Morgan Stanley and advisors such as Cantor Fitzgerald. The race to secure funding and prepare for IPOs shows that crypto is moving deeper into mainstream finance. Investors are weighing opportunities against risks as companies like Kraken, Coinbase, Tether, and Circle fight for market share. The outcomes of these fundraising efforts will help define how the digital asset sector competes with established financial institutions in the years ahead.
