Kraken Makes Bold Job Cuts Amid Secretive Moves Toward U.S. IPO

Kraken, one of the largest cryptocurrency exchanges in the universe, is downsizing its organization through layoffs and by merging teams with overlapping functions. This is part of a larger streamlining process begun in late 2024, demonstrating Kraken’s commitment to clearing up its internal organization of workstreams in alignment with strategic objectives.

Even after the reductions, a spokesperson from Kraken clarified that the company is also hiring for essential functions for future growth. “Our goal is not a reduction in service or a reduction in workforce. It is a realignment,” the spokesperson said. “This was taken as a proactive step to ensure overall efficiency and sustainable growth.”

A Business in Transition — Not Decline

Although Kraken has laid off some personnel, its overall business has grown. From the information communicated by the Company, Kraken is launching more products than ever, growing its product range faster, and earning revenue growth that is tied to those offerings. 

Earlier in 2025, Kraken acquired NinjaTrader, a leading retail futures trading firm, for $1.5 billion. The goal of this acquisition is to expand Kraken’s footprint beyond crypto into futures and across traditional asset classes. 

Regulatory Win and Political Winds Shift in Favor

Kraken’s recent restructuring follows a significant regulatory win. In March, the U.S. Securities and Exchange Commission (SEC) dropped its civil suit against the exchange that had asserted Kraken was operating as an unregistered securities platform. In a blog, Kraken called this a “crypto turning point” and criticized the previous regulatory posture of the Biden administration as politically based and an impediment to innovation.

The platform has sounded positive notes about its regulatory future under U.S. President Donald Trump, whose administration has made movements toward adopting business-friendly laws. These have produced enough optimism in the crypto space that firms like Kraken are looking to achieve more of an all-around financial status.

Expanding into Traditional Finance with U.S. Stock Trading

Kraken is strategically developing its efforts to become more than a crypto exchange. It has rolled out commission-free trading for over 11,000 U.S.-listed stocks and ETFs in several states, and aims to roll it out nationwide and internationally, including in the U.K., Europe, and Australia.

This feature is available in 10 U.S. states so far, including New Jersey, Alabama, and  Connecticut. Users can trade equities through the same interface—web, mobile app, or Kraken Pro—as they trade for crypto, making it a multi-asset platform. 

IPO Rumors Sparked by Structural Moves

While Kraken hasn’t formally confirmed plans for an Initial Public Offering (IPO), it does appear to be taking additional steps in that direction. The platform’s enhancements, expanding range of offerings, and entrance into traditional financial market in the currency trading space, are all patterns common to companies like Coinbase leading up to their public offering.

After the decision of Jesse Powell to step down as CEO, Kraken announced David Ripley as the new CEO, and then later a co-CEO with Arjun Sethi. Change is still taking place with Kraken. The firm had previously already made moves to eliminate 15% of its workforce – roughly 400 jobs – at the end of 2024, indicating a fresh turn in the enterprise transformation.

Kraken’s Vision: A Unified Financial Gateway

Arjun Sethi states that Kraken is looking forward to a world in which digital and traditional asset classes interact in a single trading environment. With more customer demand for 24/7 global access to a wide variety of financial instruments, Kraken is investing in a way to lead the change by best positioning itself as the platform for trading cryptocurrencies, equities, and eventually tokenized assets.

This shift in strategy could potentially put Kraken as one of the most complex financial platforms in the world, acting as a bridge between decentralized finance and the traditional financial markets.