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

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Crypto alternate Kraken has unveiled Kraken Launch, a brand new platform designed to provide retail buyers direct entry to early token gross sales in a regulatory-compliant method.

The initiative, announced in partnership with fundraising platform Legion, marks one in all Kraken’s most formidable steps but towards reshaping how digital belongings are launched to the market.

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

For greater than a decade, one of many challenges in crypto has been the shortage of truthful entry to token launches. Retail customers typically solely achieve publicity as soon as tokens start buying and selling brazenly, lengthy after early backers and insiders have secured allocations.

Kraken Launch is meant to vary that dynamic by providing a mannequin it describes as “IPO-style” token gross sales, making certain larger transparency, equal entry, and regulatory readability.

The product arrives as Europe’s Markets in Crypto-Assets (MiCA) framework begins to take impact, with Kraken emphasizing that every one gross sales performed by the platform will adhere to clear regulatory necessities.

According to the corporate, members may have entry to all crucial info, free from hidden allocations or insider offers, whereas having fun with the safety and compliance infrastructure of the Kraken alternate.

“Kraken is constructing the inspiration of tomorrow’s monetary infrastructure with crypto at its core,” mentioned Brett McLain, the alternate’s Head of Payments and Blockchain.

He added that the partnership with Legion would assist democratize token gross sales by aligning communities with undertaking builders, setting what he referred to as a “increased customary” for the following technology of fundraising.

Legion, which has constructed a popularity for its compliance-focused fundraising expertise, will function the spine of the initiative.

Its system evaluates members primarily based on on-chain historical past, social exercise, and developer contributions, making certain {that a} portion of token allocations go to those that have meaningfully contributed to the ecosystem.

The remainder of the gross sales shall be open on a first-come, first-served foundation, each on Kraken Launch and Legion. Matt O’Connor, co-founder of Legion, framed the partnership as a step towards remodeling capital markets.

“The subsequent Figma or Reddit received’t IPO. It’ll launch to its neighborhood on-chain,” he mentioned.

The announcement comes as Kraken continues to report robust monetary efficiency regardless of market volatility.

In its Q1 2025 replace, the alternate disclosed $472 million in revenue and $187 million in adjusted EBITDA, a 19% year-on-year improve in income and a 1% rise in EBITDA.

Trading volumes grew 29% in contrast with the earlier yr, whereas funded accounts elevated by 26%.

Kraken’s second-quarter figures showed an analogous development. Revenue climbed 18% year-on-year to $411.6 million, although adjusted EBITDA fell 7% to $79.7 million as weaker volumes adopted a robust first quarter.

Total alternate quantity reached $186.8 billion, up 19% year-on-year however down 11% from Q1. Assets on the platform rose sharply, growing 47% over the yr to $43.2 billion by June.

The launch of Kraken’s new product additionally comes amid studies that the company is preparing to raise $500 million at a $15 billion valuation forward of a long-anticipated preliminary public providing scheduled for early 2026.

Co-CEO Arjun Sethi has mentioned the increase might assist solidify investor confidence earlier than the itemizing.

Kraken Launches Tokenized Stock Trading for European Investors

Crypto alternate Kraken has launched xStocks, a tokenized securities buying and selling product aimed toward giving European buyers entry to main U.S. shares and exchange-traded funds (ETFs).

The service, launched on September 10 through Kraken’s PEDSL-CY entity, is restricted to EU shoppers who cross an appropriateness take a look at or qualify as skilled buyers. U.S. residents are excluded, as xStocks will not be registered underneath the Securities Act.

Launched in May, xStocks operate as tokenized certificates that mirror the market worth 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 achieve publicity to cost actions however don’t obtain shareholder rights reminiscent of voting or dividends. At launch, Kraken listed 60 belongings, together with Tesla, Apple, and GameStop.

The transfer follows growing regulatory scrutiny of tokenized equities. In August, representatives from Kraken met with the U.S. Securities and Exchange Commission to debate tokenized buying and selling frameworks, disclosure requirements, and investor protections.

Regulators worldwide have warned that tokenized shares typically lack the safeguards current in conventional fairness markets, regardless of their 24/7 availability.

Kraken has additionally been increasing its tokenization partnerships. In July, it teamed up with Backed Finance and BNB Chain to increase xStocks as BEP-20 tokens, enabling broader entry inside decentralized finance.

The rollout reveals Kraken’s technique to bridge conventional finance and blockchain. By bringing equities on-chain, the alternate is positioning tokenized securities as a brand new frontier in digital asset buying and selling.

The submit Kraken Rolls Out ‘IPO-Style’ Token Sales in MiCA-Compliant Launch on Legion appeared first on Cryptonews.

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