Which bank will take Kraken public before 2027?

Kraken's November 2025 funding round saw direct equity investment. Kraken secured an $800 million funding round in November 2025, increasing its valuation to $20 billion. The investors involved, including Jane Street, DRW Venture Capital, HSG (HongShan), Oppenheimer Alternative Investment Management, Tribe Capital, IMC, Wintermute, and Citadel Securities, primarily acted as direct equity investors, rather than traditional investment banking arrangers or bookrunners for the round. Most of these participating firms do not typically secure lead-left IPO mandates.

Influential investors will shape Kraken's future IPO syndicate. Despite the investor composition for the funding round, premier venture firms like HSG and Tribe Capital will significantly influence the selection of a lead underwriter for a potential public listing. This process is expected to favor bulge-bracket banks with extensive experience in major technology and financial technology IPOs, such as Goldman Sachs or Morgan Stanley. Oppenheimer & Co. Inc., which is affiliated with Oppenheimer Alternative Investment Management, is a highly probable participant in the IPO syndicate, likely in a co-manager capacity, but less likely for the lead-left role. A public listing for Kraken, whether through a traditional IPO or a Direct Listing, before January 1, 2027, is considered highly plausible, contingent on favorable market conditions and regulatory stability.

Kraken confidentially filed a draft S-1, keeping legal counsel undisclosed. Kraken (Payward, Inc.) confidentially submitted a draft S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) on November 19, 2025, anticipating an Initial Public Offering (IPO) in early 2026. As of February 5, 2026, the specific legal counsel retained for this S-1 filing remains confidential, a standard practice for initial private submissions. Public disclosure of the counsel will occur with the formal S-1 filing, where it will be revealed in the Exhibit 5.1 legal opinion.

Several elite law firms are considered probable candidates for Kraken's counsel. Despite the ongoing confidentiality, industry analysis indicates several elite law firms as probable candidates for Kraken's issuer's counsel. Skadden, Arps, Slate, Meagher & Flom LLP is a strong contender, partly due to Kraken's General Counsel being a Skadden alumnus and the firm's top-ranked expertise in fintech and IPOs. Other leading candidates include Cooley LLP, recognized for its work with high-growth tech companies, Simpson Thacher & Bartlett LLP, known as a capital markets powerhouse, and WilmerHale, distinguished for its exceptional regulatory and SEC-facing practice.

Investment bank candidates for Kraken's IPO are bulge-bracket firms. The research does not identify Kraken's specific retained law firm, precluding an analysis of that firm's partnership history with investment banks. However, for Kraken's IPO, projected to exceed a $20 billion valuation, bulge-bracket investment banks such as Goldman Sachs, J.P. Morgan, and Morgan Stanley are primary candidates for lead bookrunning managers. Kraken's IPO is strategically timed to capitalize on a resurgent tech IPO market, though it must also navigate its significant regulatory history with the SEC. The success of the offering will heavily depend on transparent disclosure in the S-1's 'Risk Factors' section and a proactive strategy to address compliance challenges.

KRAKacquisition Corp completed its $345 million SPAC IPO in January 2026. The company successfully raised $345 million, exceeding its initial target, through the sale of 34.5 million units at $10.00 each. Each unit consists of one Class A ordinary share and one-fourth of a redeemable warrant. Santander US Capital Markets LLC served as the sole book-running manager for the IPO, a unique single mandate that may signify its strategic focus on digital asset mandates or pre-existing relationships with the SPAC's sponsors. Trading of these units commenced on the Nasdaq Stock Market under the ticker symbol "KRAQU" on January 28, 2026.

Significant personnel overlap connects the SPAC to cryptocurrency exchange Kraken. KRAKacquisition Corp's sponsor, NCTK Sponsor LLC, is a joint venture involving Kraken (Payward Inc.), Tribe Capital, and Natural Capital. A direct operational link exists with Sahil Gupta, who concurrently serves as the CFO of KRAKacquisition Corp and Head of Strategic Initiatives at Kraken. KRAKacquisition Corp functions as a distinct, publicly traded acquisition vehicle designed to invest in crypto infrastructure and potentially bolster the broader ecosystem, despite Kraken having confidentially filed for its own traditional IPO. Importantly, there is no pre-arranged or contractual obligation for Kraken to merge with KRAKacquisition Corp.

Citadel Securities primarily influences Kraken's underwriter selection through "soft power." Its November 2025 strategic investment in Kraken positions Citadel Securities as a dominant market maker, creating symbiotic economic relationships with major broker-dealers and investment banks through significant payments for order flow. This market position means an underwriter with an existing strong relationship with Citadel Securities could present a compelling proposal to Kraken, promising superior liquidity, tighter spreads, and more stable after-market trading for the stock—all critical factors for a successful initial public offering.

There is no public evidence of direct contractual mandates for underwriting services. While pro-rata participation rights are standard in venture capital to prevent dilution,, a clause granting a "Right of First Offer" for underwriting services would be highly unusual and represent a significant departure from typical market practice. Kraken's management and board maintain a fiduciary duty to maximize value for all shareholders, necessitating a competitive and objective underwriter selection process based on conventional metrics such as valuation, distribution capabilities, and research strength.

Several significant factors mitigate Citadel Securities' direct influence. The observed alignment between top-tier underwriters and market makers may be a natural feature of a concentrated market rather than indicative of causal influence. Furthermore, regulatory scrutiny and the potential for conflicts of interest could incentivize Kraken to demonstrate clear independence in its choice of partners. Kraken's own strategic decisions, including its sponsorship of the KRAKacquisition Corp SPAC, further suggest a diversified approach to financing and public market access, indicating operational independence from any single investor.

While Kraken has not publicly named its lead underwriters, strong evidence points to Goldman Sachs and JPMorgan Chase as primary contenders for the anticipated 2026 IPO,. These investment banks were retained by Kraken for a significant $1 billion pre-IPO financing round in mid-2025, providing them with an incumbency advantage and intimate familiarity with Kraken's financials and strategic roadmap,. The selection of a lead underwriter typically involves a competitive 'bake-off' process, where banks are evaluated on their valuation narrative, distribution capabilities, research coverage, regulatory understanding, and aftermarket support. For a crypto-native firm like Kraken, the ability to navigate the evolving U.S. regulatory landscape is a particularly critical factor in this selection process.

Kraken formally signaled its IPO intent with a confidential SEC filing. The company confidentially filed a draft S-1 registration with the U.S. Securities and Exchange Commission (SEC) on November 19, 2025, formally indicating its intent to go public in 2026, subject to favorable market conditions and regulatory clarity,. This move is supported by Kraken's strong financial position, evidenced by a $20 billion valuation after an $800 million funding round in November 2025,. Furthermore, Kraken reported approximately $1.5 billion in revenue for 2024, representing a 100% year-over-year increase, with Q3 2025 figures showing $648 million in revenue. Kraken's strategic preparations, including potential board enhancements and diversifying its business through acquisitions, further strengthen its appeal to top-tier underwriters and public market investors,.

Several bullish catalysts could accelerate Kraken's IPO before 2027. Kraken confidentially filed its draft S-1 in November 2025, targeting a public listing as early as Q1 2026. This readiness is bolstered by successful funding rounds, including an $800 million raise in November 2025 that valued the company at $20 billion. A favorable U.S. regulatory environment, marked by the SEC dropping its lawsuit against Kraken in March 2025 and potential legislative clarity, significantly reduces regulatory risk. Strong financial performance, with $2.2 billion in revenue for 2025 (a 33% increase), and a successful broader crypto IPO market in 2025 (11 IPOs raising $14.6 billion) create an attractive environment. Additionally, major banks like Goldman Sachs and JPMorgan Chase have already engaged with Kraken for fundraising, making them strong candidates to lead the IPO. Conversely, bearish catalysts could push against a public listing. A significant and sustained downturn in cryptocurrency prices or trading volumes, or an unfavorable broader stock market, could diminish investor appetite for crypto-related IPOs. Renewed regulatory uncertainty or new enforcement actions, despite current positive trends, could deter an IPO, especially if key legislation like the Digital Asset Market Clarity (CLARITY) Act is delayed beyond 2026. The IPO process itself is complex and can experience delays, aligning with Kraken's previous stance of "no rush." While the KRAKacquisition Corp SPAC completed its IPO in January 2026, its focus is on acquiring other businesses, not directly taking Kraken public, which could introduce unrelated uncertainties.