Kraken Raises $800M at $20B Valuation Ahead of IPO

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Kraken’s $800M raise has pushed its valuation to $20B and set the stage for an IPO next year. It’s a clear signal that Kraken is positioning itself as a leading institutional gateway for the next phase of crypto.

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In Today's Email:

• What Matters: Kraken Raises $800M at $20B Valuation Ahead of IPO 🐙 

• Case Study: Ethereum Unveils Interop Layer 🔎 

• Governance & Features: Sky Backs Obex With $2.5B for DeFi Yield Projects 💰️ 

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WHAT MATTERS

Kraken Raises $800M at $20B Valuation Ahead of IPO

State of play: Kraken raised $800M across two funding tranches, pushing its valuation to $20B as it gears up for an IPO early next year.

• The raise included major institutions like Jane Street, DRW Venture Capital, Oppenheimer, and a $200M strategic investment from Citadel Securities.

• Citadel will support Kraken with liquidity, risk management, and market structure expertise.

• Kraken has been expanding aggressively through acquisitions, most recently buying Small Exchange for $100M to launch a U.S. derivatives platform.

• The exchange earned $472M in revenue in Q1 2025, up 19% year over year, and recorded $40.5B in trading volume in October.

• Kraken frames the raise as a vote of confidence in its push to build regulated infrastructure for global crypto markets.

Why it matters: A $20B valuation and backing from Citadel show that big finance still believes in regulated crypto exchanges.

Our take: Kraken is leaning hard into the “institutional exchange” lane. The investor mix makes it clear that its upcoming IPO isn’t just hype, it’s a real bet on a more mature market.

For builders and investors: Kraken’s trajectory hints at a 2026 market where regulated liquidity and derivatives access become standard.

CASE STUDY

Ethereum Unveils Interop Layer

Ethereum Foundation researchers released new details about the upcoming Interop Layer, a protocol designed to unify Ethereum’s fragmented Layer 2 ecosystem.

• The Interop Layer aims to make all L2s “feel like one chain” by removing the need for bridges, chain switching, or managing multiple balances.

• The system takes a wallet-centric approach. With ERC-4337 account abstraction at its core, wallets and dapps become multichain-native by default.

• Users can interact across any rollup without knowing which chain they’re on, and new or existing L2s are automatically compatible.

• The Interop Layer is now open for testing and is meant to solve the UX and liquidity fragmentation created by Ethereum’s rapid scaling.

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INSIGHTS

Uniswap Eyes UNI Burns as 2025 Fees Near $1B

Uniswap’s new “UNIfication” proposal would activate protocol fees, route them to a UNI burn system, and streamline governance.

• The protocol has already generated more than $985M in fees this year, with strong growth since Q2.

• If the v3 fee switch is enabled, Uniswap could capture 10–25% of LP fees, creating meaningful protocol revenue that would be burned.

• The market responded quickly. UNI surged more than 35%, adding over $1.6B to its value.

FEATURES & GOVERNANCE UPDATE

Sky Backs Obex With $2.5B for DeFi Yield Projects

Framework Ventures, LayerZero, and the Sky Ecosystem have co-led a $37M round for Obex, a new incubator designed to expand the Sky (formerly MakerDAO) ecosystem.

• Alongside the raise, the Sky community approved allocating up to $2.5B in USDS to fund projects that graduate from Obex’s 12-week program.

• Obex will focus on capital-intensive DeFi projects that generate onchain yield for the broader Sky ecosystem and its subDAOs.

• The goal is to strengthen Sky’s RWA and stablecoin strategy launched under “endgame” plan, which includes the USDS stablecoin and Sky Savings Rate.

• Framework and Sky leaders say Obex aims to help Sky compete with major TradFi players by scaling institutional-grade DeFi infrastructure.

• The program will be run from San Francisco and administered by Framework.

Other notable feature updates:

• Sui launched USDsui.

• Neutrl has launched $NUSD.

• Injective launched its EVM Mainnet.

• ZKsync shared a new $ZK Token Proposal.

• Jupiter announced its integration with Robinhood Wallet.

• Uniswap introduced the Continuous Clearing Auction (CCA) Protocol.

QUICK BITES

• Kraken's valuation hits $20B.

• BTC & ETH spot ETFs see combined $437M outflows.

• Revolut, Mastercard tap Polygon for new integrations.

• OCC says banks can hold certain cryptos to pay gas fees.

• Ethereum Foundation reveals latest work on 'Interop Layer.'

• US Senate banking chair eyes vote on crypto market bill next month.

• Uniswap weighs protocol burns as its 2025 fee haul approaches $1B.

• Hyperliquid treasury merger vote delayed, postponing $888M deal.

• Pump’s new ‘Mayhem Mode’ fails to boost token launches or revenue.

• Sky authorizes up to $2.5B to back Obex-incubated crypto yield projects.

NOTEWORTHY READS & MEME

• Omar’s read on Banks and DAT Mania.

• Wintermute’s read on November Week 3 Market Update.

• Stablewatch’s read on Yield-Bearing Stablecoin Landscape Report.

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