Kraken Slashes Workforce in Ongoing Layoffs as Exchange Preps for U.S. IPO

Kraken, a major player in the cryptocurrency exchange arena, is undergoing a significant overhaul. The company is cutting jobs and merging teams, even as it continues to hire in critical areas. This move is part of Kraken’s preparation for a potential U.S. IPO and reflects broader trends in the crypto sector.

• Kraken restructures workforce amid IPO preparations
• SEC lawsuit dismissed, freeing Kraken for growth
• Expansion into traditional markets with NinjaTrader acquisition

Kraken’s Workforce Restructuring

Kraken’s workforce restructuring began late last year, affecting all areas of the company. By the end of 2024, about 400 positions, or roughly 15% of its workforce, were eliminated. This move is designed to streamline the business ahead of a potential U.S. IPO. While some may see these layoffs as a sign of trouble, they’re more akin to a crypto company’s version of a spring cleaning — out with the old, in with the new, and hopefully, a step closer to going public. For a detailed look at the layoffs, see Kraken layoffs 2024 details and impact on employees.

SEC Lawsuit Dismissal

In March 2025, the U.S. Securities and Exchange Commission (SEC) dismissed a lawsuit against Kraken, which had accused the exchange of operating as an unregistered securities exchange. Kraken celebrated this dismissal as a “crypto turning point that ended a wasteful, politically driven campaign that had been started during the Biden administration and acted as a barrier to investment and innovation.” This legal victory has allowed Kraken to focus on its growth strategy, unshackled from the regulatory handcuffs. For more on the implications of this dismissal, check out SEC lawsuit dismissal against Kraken.

Expansion into Traditional Markets

Kraken has attributed its growth to U.S. President Donald Trump’s pro-business policies. “Trump’s promise to enact more business-friendly laws has been instrumental in Kraken’s growth,” the company stated. This political environment has encouraged Kraken to expand beyond cryptocurrencies. Earlier this year, Kraken acquired NinjaTrader, a retail futures trading platform, for a staggering $1.5 billion. Asset tokenization — turning rights to an asset into a digital token on a blockchain — is part of Kraken’s broader vision. Kraken has also launched commission-free trading for over 11,000 U.S. stocks and ETFs, a move into the equity market that co-CEO Arjun Sethi highlighted as facilitating this tokenization trend.

“Cryptocurrency was recently the foundation for trading in various asset classes, including stocks, commodities, and currencies…customers sought a smooth, all-in-one trading platform as the need for round-the-clock worldwide access increased,” Sethi noted. This gradual introduction of stock trading started in ten U.S. jurisdictions, with plans to expand to the U.K., Europe, and Australia. Kraken’s ambition to compete with platforms like Robinhood is clear, as it aims to offer a seamless multi-asset trading experience. Learn more about Kraken’s expansion into traditional markets here.

IPO Preparations

These developments signal Kraken’s preparation for a potential U.S. IPO, joining other U.S.-based crypto firms like Coinbase, Marathon Digital, and Bitdeer in their public market ambitions. The restructuring and expansion into traditional markets are part of Kraken’s broader strategy to streamline its business ahead of an IPO, reflecting the industry’s trend towards offering comprehensive financial services while navigating regulatory challenges. For more on Kraken’s IPO preparations, visit the Kraken IPO preparations wiki.

Leadership and Vision

With Arjun Sethi stepping up as co-CEO alongside David Ripley in 2023, following founder Jesse Powell’s departure, Kraken’s leadership is steering the company towards a future where it not only trades cryptocurrencies but also competes in the broader financial market. This move into traditional markets, combined with the NinjaTrader acquisition, positions Kraken as a pioneer in offering a seamless, all-in-one trading experience. For community discussions on Kraken’s workforce restructuring, see Kraken workforce restructuring.

Potential Challenges and Risks

While Kraken’s moves are ambitious, they’re not without risks. Regulatory scrutiny remains a significant challenge, as the crypto industry continues to navigate a complex legal landscape. Market volatility could also impact Kraken’s IPO plans, and the company must carefully manage its expansion to avoid overextending its resources. It’s a high-stakes game of chess, where Kraken is betting big on becoming a household name in finance, but the regulatory and market dragons are never far behind. For a comprehensive overview of Kraken’s recent layoffs, read Kraken slashes workforce in ongoing layoffs as exchange preps for U.S. IPO.

Key Questions and Takeaways

What is Kraken doing with its workforce?
Kraken is restructuring its workforce by laying off employees and merging overlapping teams, while still hiring in critical areas.

How has the SEC lawsuit affected Kraken?
The SEC lawsuit, which accused Kraken of operating as an unregistered securities exchange, was dismissed in March 2025, allowing Kraken to continue its operations and growth.

What role have Trump’s policies played in Kraken’s strategy?
Kraken attributes its growth to Trump’s pro-business policies, which have encouraged the company to expand into traditional financial markets.

What new services has Kraken introduced?
Kraken has acquired NinjaTrader for $1.5 billion and launched commission-free trading for over 11,000 U.S. stocks and ETFs.

Is Kraken preparing for an IPO?
Yes, Kraken is preparing for a potential U.S. IPO, joining other crypto firms like Coinbase, Marathon Digital, and Bitdeer.

How is Kraken expanding its trading offerings?
Kraken has started a gradual introduction of stock and ETF trading in the U.S., with plans to expand to the U.K., Europe, and Australia.

What is the significance of Kraken’s move into the equity market?
Kraken’s move into the equity market facilitates asset tokenization, aligning with the trend of offering a comprehensive trading experience across various asset classes.

As Kraken navigates this pivotal moment, it’s clear that the company is not just weathering the storm but steering into it, ready to challenge the status quo in the financial world. With a keen eye on decentralization and a commitment to disrupting traditional finance, Kraken’s journey is one to watch closely.