Crypto exchange Kraken has suspended its plans for an initial public offering, sources familiar with the matter told CoinDesk.
The company’s parent, Payward, had filed a confidential draft S-1 registration statement with the U.S. Securities and Exchange Commission in November 2025. The filing valued Kraken at $20 billion, following an $800 million funding round that included a $200 million investment from Citadel Securities.
Kraken had planned to go public this year but now faces a market environment marked by falling crypto prices and weaker trading volumes. The downturn has prompted many digital asset companies to reconsider timing and structure for public listings.
Last year saw a surge in crypto IPOs, with at least 11 companies, including Circle, Bullish, and Gemini, raising a combined $14.6 billion.
So far in 2026, only crypto custodian BitGo has listed publicly, and its shares have declined 45%, highlighting the risks for new entrants.
Kraken has not ruled out a future IPO but appears unlikely to pursue one until market conditions stabilize.
A company spokesperson reiterated the November announcement and declined further comment.
Kraken’s master account
Earlier this month, Kraken secured a master account with the Federal Reserve Bank of Kansas City, making it the first crypto-native firm to access the Fed’s core payment infrastructure.
The approval gives Kraken Financial direct entry into Fed payment systems, including Fedwire, a real-time network that handles trillions of dollars in daily transfers.
This allows the firm to settle dollar transactions without relying on intermediary banks, streamlining operations for large customers.
Kraken’s master account does not provide all traditional banking privileges: it will not earn interest on reserves or access the Fed’s lending facilities. Nonetheless, the move represents a breakthrough for crypto firms, which have historically faced repeated rejections in efforts to connect to the central bank’s payment rails.
Sen. Cynthia Lummis of Wyoming called the approval a “watershed milestone” for digital assets.
Other firms, including Ripple and Custodia Bank, have applied for master accounts, though approval has been uneven.
Kraken’s success is a sign the Fed may explore “skinny” master accounts, granting crypto institutions limited access to payment rails without full bank benefits, signaling cautious but growing acceptance of crypto in mainstream finance
Under such a framework, crypto firms could connect to settlement systems while remaining outside certain capital and reserve regimes applied to depository institutions.
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