Kraken, the cryptocurrency exchange, officially under parent company Payward, has paused its plans for an initial public offering (IPO) due to challenging market conditions.
Kraken confidentially filed a draft S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) in November 2025, signaling intentions for a potential public listing as early as the first quarter of 2026. At the time, reports suggested a valuation around $20 billion following prior funding rounds.
However, the company has put those plans on hold. Key details include: The pause stems from a downturn in cryptocurrency markets since late 2025, including falling asset prices; Bitcoin declining from its October 2025 peak, reduced trading volumes, and weaker investor sentiment.
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Kraken is not abandoning the idea entirely — sources indicate it may revisit the IPO when conditions improve, such as stabilized or recovering crypto markets. A Kraken spokesperson has acknowledged the filing but declined to comment further on the delay.
This reflects a broader caution in the crypto sector for public listings in 2026, following a more active 2025 that saw billions raised in crypto-related IPOs, but with struggles for some recent ones like BitGo. This news aligns with the current volatile environment affecting many digital asset firms’ timing for going public.
Crypto valuations and activity have cooled significantly in early 2026, making traditional IPO windows less attractive compared to on-chain or alternative growth strategies. Kraken’s tokenized securities primarily revolve around its xStocks product, which represents tokenized versions of real-world U.S. stocks and ETFs (exchange-traded funds).
This is a key part of Kraken’s (and its parent company Payward’s) strategy to bridge traditional finance (TradFi) with blockchain-based assets, often categorized under real-world assets (RWAs) or tokenized equities. xStocks are digital tokens that represent ownership or exposure to traditional equities: Each token is backed 1:1 by the underlying real-world stock or ETF shares, held in custody by regulated third parties for transparency and compliance.
They are issued as SPL tokens on the Solana blockchain with some bridging to other chains like Ethereum via recent developments. This enables features like fractional ownership starting as low as $1 USD, instant settlement, self-custody, and trading outside traditional market hours.
Not available to U.S. clients due to regulatory restrictions on tokenized securities in the U.S. Offered to eligible users in regions like Europe expanded in September 2025, Latin America, Africa, Asia, and over 110 countries for certain products. Traded directly on the Kraken platform via the app or Kraken Pro, with 24/5 access on weekdays and some 24/7 on-chain options.
Kraken integrates xStocks with its broader ecosystem, including potential future spending and holding in apps like Krak: Rolled out globally (ex-U.S.) starting around May 2025, initially with over 50-60 assets. Powered initially by a partnership/collaboration with Backed Finance.
In December 2025, Kraken acquired Backed Finance (the issuer behind xStocks) after volumes hit $10 billion, accelerating expansion and integration. Over 100 tokenized U.S. stocks and ETFs available on Kraken, up from 60 at launch. Examples include: Tesla (TSLAx) Apple (AAPLx), GameStop (GMEx), NVIDIA, Amazon, and others from the S&P 500 or major indices.
Trading Volume: Surpassed $25 billion in total transaction volume including $4+ billion on-chain, with strong adoption showing tokenized equities as a growing market. Launched perpetual futures on tokenized equities for leveraged 24/7 access in eligible non-U.S. jurisdictions (February 2026).
Introduced Xchange, an on-chain trading engine bridging liquidity across Ethereum and Solana for over 70 tokenized equities. Ambitions to expand to over 500 xStocks by end of 2026. Payward/Kraken is collaborating with Nasdaq to build an “equities transformation gateway.”
This connects regulated markets with blockchain networks, using xStocks as the foundation for tokenized equities that preserve issuer control, regulatory compliance, and shareholder rights; voting, corporate actions. Expected operational in H1 2027, with Kraken as primary settlement layer in eligible areas. This aims for 24/7 trading, programmable features, and seamless flow between TradFi and DeFi.
Kraken positions xStocks as a “gold standard” for tokenized equities — market-neutral, interoperable, and focused on accessibility, liquidity, and reduced friction compared to traditional brokerage models. This aligns with broader industry trends in RWAs, where tokenized assets are seen as a high-growth area amid cooling crypto markets and paused IPO plans.