Kraken Rolls Out ‘IPO-Style’ Token Sales in MiCA-Compliant Launch on Legion

Crypto exchange Kraken has unveiled Kraken Launch, a new platform designed to give retail investors direct access to early token sales in a regulatory-compliant manner.

The initiative, announced in partnership with fundraising platform Legion, marks one of Kraken’s most ambitious steps yet toward reshaping how digital assets are introduced to the market.

Kraken Launch Targets Retail Access to Early-Stage Tokens Under EU Rules

For more than a decade, one of the challenges in crypto has been the lack of fair access to token launches. Retail users often only gain exposure once tokens begin trading openly, long after early backers and insiders have secured allocations.

Kraken Launch is intended to change that dynamic by offering a model it describes as “IPO-style” token sales, ensuring greater transparency, equal access, and regulatory clarity.

The product arrives as Europe’s Markets in Crypto-Assets (MiCA) framework begins to take effect, with Kraken emphasizing that all sales conducted through the platform will adhere to clear regulatory requirements.

According to the company, participants will have access to all necessary information, free from hidden allocations or insider deals, while enjoying the security and compliance infrastructure of the Kraken exchange.

“Kraken is building the foundation of tomorrow’s financial infrastructure with crypto at its core,” said Brett McLain, the exchange’s Head of Payments and Blockchain.

He added that the partnership with Legion would help democratize token sales by aligning communities with project builders, setting what he called a “higher standard” for the next generation of fundraising.

Legion, which has built a reputation for its compliance-focused fundraising technology, will serve as the backbone of the initiative.

Its system evaluates participants based on on-chain history, social activity, and developer contributions, ensuring that a portion of token allocations go to those who have meaningfully contributed to the ecosystem.

The rest of the sales will be open on a first-come, first-served basis, both on Kraken Launch and Legion. Matt O’Connor, co-founder of Legion, framed the partnership as a step toward transforming capital markets.

“The next Figma or Reddit won’t IPO. It’ll launch to its community on-chain,” he said.

The announcement comes as Kraken continues to report strong financial performance despite market volatility.

In its Q1 2025 update, the exchange disclosed $472 million in revenue and $187 million in adjusted EBITDA, a 19% year-on-year increase in revenue and a 1% rise in EBITDA.

Trading volumes grew 29% compared with the previous year, while funded accounts increased by 26%.

Kraken’s second-quarter figures showed a similar trend. Revenue climbed 18% year-on-year to $411.6 million, though adjusted EBITDA fell 7% to $79.7 million as weaker volumes followed a strong first quarter.

Total exchange volume reached $186.8 billion, up 19% year-on-year but down 11% from Q1. Assets on the platform rose sharply, increasing 47% over the year to $43.2 billion by June.

The launch of Kraken’s new product also comes amid reports that the company is preparing to raise $500 million at a $15 billion valuation ahead of a long-anticipated initial public offering scheduled for early 2026.

Co-CEO Arjun Sethi has said the raise could help solidify investor confidence before the listing.

Kraken Launches Tokenized Stock Trading for European Investors

Crypto exchange Kraken has introduced xStocks, a tokenized securities trading product aimed at giving European investors access to leading U.S. stocks and exchange-traded funds (ETFs).

The service, launched on September 10 through Kraken’s PEDSL-CY entity, is restricted to EU clients who pass an appropriateness test or qualify as professional investors. U.S. residents are excluded, as xStocks are not registered under the Securities Act.

Launched in May, xStocks operate as tokenized certificates that mirror the market price of real-world securities, issued on-chain as SPL or BNB tokens. Each is backed 1:1 by the underlying asset and issued by Jersey-based Backed Assets (JE) Limited.

Holders gain exposure to price movements but do not receive shareholder rights such as voting or dividends. At launch, Kraken listed 60 assets, including Tesla, Apple, and GameStop.

The move follows increasing regulatory scrutiny of tokenized equities. In August, representatives from Kraken met with the U.S. Securities and Exchange Commission to discuss tokenized trading frameworks, disclosure standards, and investor protections.

Regulators worldwide have warned that tokenized stocks often lack the safeguards present in traditional equity markets, despite their 24/7 availability.

Kraken has also been expanding its tokenization partnerships. In July, it teamed up with Backed Finance and BNB Chain to extend xStocks as BEP-20 tokens, enabling broader access within decentralized finance.

The rollout shows Kraken’s strategy to bridge traditional finance and blockchain. By bringing equities on-chain, the exchange is positioning tokenized securities as a new frontier in digital asset trading.

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